Weyerhaeuser to Acquire Timberlands in North and South Carolina
SEATTLE, April 14, 2022 /PRNewswire/ — Weyerhaeuser Company (NYSE: WY) today announced an agreement to purchase 80,800 acres of prime Northern Forest land and Caroline from the south of a fund managed by Campbell Global for approximately $265 million. The acquisition includes highly productive timberlands located in strong coastal markets and strategically located to provide immediate synergies with Weyerhaeuser’s existing timber operations and sawmills. In addition, the acquisition is expected to generate portfolio-best cash flow and tonnes per acre harvest within the company’s Southern Timberlands business.
Key attributes include:
Estate ownership with 89% planted pine area and high site productivity offering attractive long-term returns
Well-stocked timber inventory with a mature age class producing an attractive mix of sawlogs and an average harvest of 6.5 tonnes per acre (or 520,000 tonnes) per year in the first 10 years
Expected average adjusted EBITDA of approximately $160 per acre (or $13 million) annually from logging during the first 10 years
Significant optionality to capture the additional benefits of natural real estate and climate solutions opportunities
“This transaction is a great example of our continued efforts to enhance our portfolio with high-quality, well-managed forestlands that generate strong returns for our shareholders,” said Devin Stockfish, President and CEO. “These Carolina timberlands are strategically located, well integrated with our existing operations and offer very attractive timberlands attributes, and will provide strong cash flow for our Southern Timberlands business.”
With this acquisition, Weyerhaeuser will own or manage more than 900,000 acres of forest land in the Carolinas, and the company also operates four mills, a distribution center and a tree nursery and hosts several mitigation banks and real estate development projects. – employing more than 700 people between the two states. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2022.
Weyerhaeuser Company, one of the largest private owners of forest land in the world, began operations in 1900. We own or control approximately 11 million acres of forest land in the United States and manage additional forest land under long-term licenses in Canada. We manage these forest lands on a sustainable basis in accordance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2021, we generated $10.2 billion of net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
NON-GAAP FINANCIAL MEASURES
This press release makes reference to forward-looking estimates of Adjusted EBITDA, which is a non-GAAP measure that management uses to assess the Company’s performance. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, real estate sold basis and special items. Adjusted EBITDA should not be considered in isolation from, and is not intended to be an alternative to, our GAAP results. We have not provided a reconciliation between this non-GAAP forward-looking financial measure and the most comparable GAAP net income measure because Adjusted EBITDA, as we define it, excludes the impact of certain listed items. above in our definition of Adjusted EBITDA, and management cannot estimate these items or the impact they will have on Adjusted EBITDA on a forward-looking basis without unreasonable effort. Accordingly, investors may not be able to accurately compare the expected impact of the Acquisition to our historical results or to the results or expected results of other companies that may have addressed these issues differently. Nonetheless, management believes that the provision of such non-GAAP forward-looking information about the acquisition is helpful to investors, and given the uncertain nature of forward-looking statements, we believe investors are able to consider the limitations inherent in such forward-looking information. non-GAAP information. We cannot predict the occurrence, timing or amount of any of the items that we exclude from our estimate of Adjusted EBITDA. Therefore, the actual effect of these items, once determined, could potentially be material to the calculation of Adjusted EBITDA and actual results could differ materially from our estimate.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, with respect to the company’s expectations regarding the occurrence, timing and financial contributions and the expected economic results (including synergies, adjusted EBITDA and adjusted EBITDA per acre) from its acquisition of certain north and Caroline from the south woodlots. Forward-looking statements can be identified by our use of certain words in such statements, including, without limitation, words such as “expected”, “opportunities”, “supported”, “will” and words, terms and similar expressions using these terms and words. . We also make references to expected performance or events expected to occur on or at a future date, and such references also constitute forward-looking statements. All forward-looking statements speak only as of the date hereof, are based on current expectations and involve and are subject to a number of assumptions, risks and uncertainties that could cause actual results to differ. materially from these forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in our 2021 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, statements information and other filings with the SEC. In addition, Weyerhaeuser may not be able to complete the transaction within the stated time frame, or at all, due to a number of factors, including, without limitation: the occurrence of any event, change or other circumstance that may give rise to termination of the transaction under the terms of the purchase and sale agreement governing the transaction, or breach of other closing conditions. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of these events occurs, there is no assurance as to the effect it will have on the business, results of operations, cash flows, financial condition and future prospects of the society. The company undertakes no obligation to update these forward-looking statements after the date of this press release.
For more information contact:
Analysts – AndyTaylor206-539-3907
Media – Nancy Thompson919-861-0342
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SOURCE Weyerhaeuser Company