Weyerhaeuser Company, among the world's biggest private owners of timberlands, engaged in a definitive deal to purchase stocks of Longview Timber from Brookfield Asset Management. The deal is worth $2.65 billion inclusive of debt assumption. The transaction is expected to close next month closing conditions are satisfied.
Weyerhaeuser will acquire an estimated 645,000 acres of timberlands located in the Oregon-Washington vicinity. The location is said to contain high-quality timber forest. Through this acquisition, the company expands its holdings of timber in the area by one third of its current, equated to about 2.6 million acres. The deal also means an approximately 6.6 million acre appendage to its timberland area of ownership in the United States.
The company expects the buyout to be accretive to its funds for distribution per share immediately.
"We believe our company is uniquely positioned to maximize the value of these timberlands," said Dan Fulton, president and Chief Executive Officer of Weyerhaeuser Company.
Join the Conversation