Weyerhaeuser exits Twin Creeks Timber venture
Weyerhaeuser has sold off its interest in the Twin Creeks Timber, LLC venture for $107.5 million in cash, the company reported today.
The forest and building products giant has also agreed to sell 100,000 acres of southern timberlands to Twin Creeks for $202.5 million, which includes 80,000 acres in Mississippi and 20,000 acres in Georgia. The deal expected to close by the end of 2017.
Under terms of the deal, Weyerhaeuser is terminating its agreement to manage Twin Creeks timberlands effective Dec. 31.
"Through these transactions, we are simplifying our operations to focus on management of our own timberlands while continuing to strategically optimize our timberland portfolio," Doyle R. Simons, Weyerhaeuser president and CEO, said in a prepared statement.
The Twin Creeks joint venture was formed as partnership between the Plum Creek Timber Company and several investment firms. Weyerhaeuser assumed a stake in the partnership after it acquired Plum Creek Timber in February 2016.
Based in Seattle, Weyerhaeuser is one of the largest global forest products and building products manufacturers. The company owns nearly 13 million acres of timberlands and generated net sales of $6.4 billion in 2016.
Jeld-Wen to acquire Domoferm
Jeld-Wen said it agreed to acquire the Domoferm Group of companies from holding company Domoferm International GmbH. Based in Austria, Domoferm is a leading European provider of steel doors, steel door frames, and fire doors for commercial and residential markets. It has more than 1,000 employees at four manufacturing sites in Austria, Germany, and the Czech Republic.
Domoferm is Jeld-Wen's tenth acquisition since 2015, and the third in the Europe segment during that period.
“Domoferm’s capabilities in steel frames and doors significantly expand our European product range, including certified door systems,” said Mark Beck, president and CEO. “We expect to deliver cost synergies through implementation of our JEM productivity initiatives.”
Jeld-Wen expects the transaction to close in mid to late first quarter of 2018, subject to customary closing conditions. Terms of the acquisition were not disclosed.
Domoferm International GmbH was privately held by Austro Holding GmbH and Grosso Holding GmbH. Jeld-Wen expects the acquisition to add approximately €110 million in annualized revenue – that’s $130.5 million.