Weyerhaeuser Acquires Carolina Timberlands for $265M
The company has purchased 80,800 acres of timberlands from a fund managed by Campbell Global.
SEATTLE, WA – One of the world’s largest private owners of timberlands, Weyerhaeuser Co. has agreed to purchase 80,800 acres of high-quality timberlands from a fund managed by Campbell Global for $265 million.
The acquired timberlands are located in strong coastal markets across North Carolina and South Carolina, and are strategically situated near existing Weyerhaeuser timber and mill operations.
Weyerhaeuser expects the acquisition to deliver portfolio-leading cash flow and harvest tons per acre within its Southern Timberlands business.
The acquisition features well-stocked timber inventory with a mature age class to produce an attractive sawlong mix. The timber will average a harvest of 6.5 tons per acre annually during the first 10 years.
The transaction offers fee ownership with 89% planted pine acreage and strong site productivity for attractive long-term timber returns. The acquisition additionally offers opportunity for additional upside from real estate and natural climate solutions.
The acquisition boasts an expected average adjusted EBITDA of $160 per acre, or $13 million, annually from timber operations during the first 10 years.
The transaction is subject to customary closing conditions and is expected to close in Q2 2022.
“This transaction is a great example of our ongoing efforts to enhance our portfolio with high-quality, well-managed timberlands that generate solid returns for our shareholders,” says Devin Stockfish, president and CEO of Weyerhaeuser.
Stockfish adds, “These Carolina timberlands are strategically located, well-integrated with our existing operations and offer very attractive timberland attributes, and they will provide strong cash flows for our Southern Timberlands business.”
With this most recent acquisition, Weyerhaeuser will own or manage more than 900,000 acres of timberlands throughout the Carolinas. Within the two states, the company additionally operates four mills, a distribution center, a tree nursery and it hosts numerous mitigation banks and real estate development projects; employing 700 professionals.