Weyerhaeuser enters into Oregon timberland deals
Weyerhaeuser reported that it has entered into two separate transactions to purchase and sell timberlands.
The forest products company is buying about 85,000 acres of timberlands in mid-coastal Oregon while selling 149,000 acres of timberlands in the southern region of the state. The Seattle-based company is both buying and selling to the funds managed by the Hancock Natural Resource Group.
Combined, the net cost of the transactions is approximately $40 million in cash.
"These two agreements represent a unique opportunity to further enhance Weyerhaeuser's western timberlands portfolio with exceptional land that is contiguous with our existing ownership," said Devin Stockfish, president and CEO of Weyerhaeuser. "Through these transactions, we are acquiring highly productive timberland with low operating costs and strong access to key domestic and export markets, and we expect them to deliver immediate and long-term value for our shareholders."
Both deals are expected to close in the fourth quarter of 2020.
Weyerhaeuser owns and controls approximately 11 million acres of timberlands in the U.S. and manages additional timberlands under long-term licenses in Canada. The company had sales of $6.6 million in 2019.