Weyerhaeuser Co Acquires Southwest Alabama Timberlands
Weyerhaeuser Company has agreed to pay approximately $149 million for 69,200 acres of high-quality Alabama timberlands from Soterra, a subsidiary of Greif, Inc.
The transaction consists of highly productive timberlands in southwest Alabama, approximately 100 miles north of Mobile.
Among the key attributes include:
- Strategically located in one of the strongest inland sawlog and fiber markets in the United States South, with a large and growing customer base and future export prospects.
- Fee simple ownership that is tightly integrated with Weyerhaeuser’s existing timberland operations.
- Excellent operability, with significant all-weather logging access and a well-developed road network. A well-stocked timber inventory, including 76% plantation acreage with an average age of 14 years, and the potential for increased productivity over time.
- Immediate and sustained cash flow, with a 10-year average expected Annual adjusted EBITDA of approximately $7 million.
President and CEO Devin W. Stockfish in a statement, “This transaction is a great opportunity to enhance our portfolio by acquiring high-quality, well-managed timberlands with low operating risk. 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.”
Its timber inventory is well-stocked, with 76 percent plantation acreage with an average age of 14 years and the potential for increased productivity over time.