Weyerhaeuser to Sell Its Princeton, BC, Lumber Mill to Gorman Group

On Wednesday, Weyerhaeuser Company announced on that it has reached an agreement to sell its lumber mill in Princeton, British Columbia, to the Gorman Group, owners of Gorman Bros. Lumber Ltd., a family-owned wood products manufacturer headquartered in West Kelowna, BC.

The purchase price is approximately CA$120 million in cash, which includes Weyerhaeuser’s manufacturing facility, all associated timber license assets in British Columbia, and the value of working capital, which will be subject to customary purchase price adjustments at closing.

Weyerhaeuser and Gorman Group have a long-standing relationship in Canada. Gorman Bros. Lumber is currently the Princeton mill’s largest customer, and Gorman Group has operated in Canada for more than 75 years, with offices and facilities in BC and Washington state.

The transaction is subject to customary closing conditions, including regulatory review, with the sale of the mill expected to be completed in Q3, and the forest tenures to follow over the ensuing months. Weyerhaeuser expects to recognize a gain on the sale and incur a tax liability of approximately CA$15 million.

Weyerhaeuser’s other operations in Canada will not be affected by this transaction, and the company will continue to operate the Princeton mill independently of the Gorman Group until the transaction closes.