Weyerhaeuser Co Acquires Southwest Alabama Timberlands

By   /  

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.

Bob is one of our top contributors covering the intersection of the construction industry and home improvement trends.