Weyerhaeuser to Acquire 84,300 Acres in Alabama

On Thursday, Weyerhaeuser announced acquisitions totaling 84,300 acres of high-quality timberlands in Alabama for $244 million. Secured through multiple transactions, the collective acreage is comprised of mature, highly productive timberlands that are well-integrated with existing Weyerhaeuser operations. Additionally, the acquisitions are expected to deliver portfolio-leading cash flow and harvest tons per acre within the company’s Southern Timberlands business.

According to the press release, these are the key attributes of the acquisition:

• Located in one of the strongest inland sawlog and fiber markets in the US South
• Fee ownership with 74% planted pine acreage and strong site productivity
• Mature planted pine age class expected to produce an average harvest of 6.4 tons per acre (or 540,000 tons) annually over the first 10 years
• Expected average adjusted EBITDA of approximately $150 per acre (or $12.5 million) annually from timber operations over the first 10 years

Of the multiple transactions involved, one closed in Q2 for $48 million. The remaining transactions are under contract and expected to close by year end, subject to customary closing conditions. When all acquisitions are finalized, Weyerhaeuser will own or manage approximately 695,000 acres of timberlands in Alabama, along with two mills, a timberlands office, and seed orchard—employing more than 350 people in the state.

In a statement accompanying the announcement, Weyerhaeuser president and chief executive officer Devin W. Stockfish said:

“These transactions represent attractive opportunities to enhance our portfolio with high-quality, well-managed timberlands that generate solid returns for our shareholders. In addition, they demonstrate our disciplined approach to timberlands growth and reinforce our longer-term outlook that the asset class will appreciate in value over time. Including these transactions, we will have completed approximately $775 million against our target to grow our Timberlands portfolio through $1 billion of disciplined investments by the end of 2025.”