Weyerhaeuser is acquiring 69,200 acres of Alabama timberlands from Soterra, a subsidiary of Greif, Inc., for approximately $149 million.
The acquisition is comprised of highly productive timberlands situated in southwest Alabama, approximately 100 miles north of Mobile, Weyerhaeuser said. Weyerhaeuser already owns or manages nearly 600,000 acres and also operates two mills and a nursery in Alabama.
Overall, Weyerhaeuser owns and manages more than 11 million acres of timberlands in the United States and Canada.
A key to this agreement includes the timberlands being strategically located in one of the strongest inland sawlog and fiber markets in the U.S. South, with a deep and expanding base of customers and future export opportunities, the forest products company said.
Additionally, Weyerhaeuser said the latest timberlands acquisition has excellent operability, with significant all-weather logging access and a well-developed road network.
"This transaction is a great opportunity to enhance our portfolio by acquiring high-quality, well-managed timberlands with low operating risk," said Devin Stockfish, president and CEO of Weyerhaeuser. "These timberlands are located in favorable markets and well-integrated with our existing supply chain, and we have strong relationships with a diverse and reliable set of customers in the area. We expect these timberlands to drive long-term value for our company."
Last month Weyerhaeuser reported that fourth quarter 2020 sales jumped 40% to $2.1 billion compared to fourth quarter 2019 sales of $1.5 billion. Sales for fiscal 2020 increased 15% to $7.53 billion from sales of $6.55 billion in the prior year.