Weyerhaeuser Acquiring High-Quality Timberlands in North Carolina and Virginia

Core Viewpoint - Weyerhaeuser Company has announced an agreement to acquire approximately 117,000 acres of high-quality timberlands in North Carolina and Virginia for $375 million, enhancing its Southern Timberlands portfolio and expected to deliver immediate cash flows [1][2]. Acquisition Details - The acquisition includes mature, productive timberlands that will integrate well with existing operations in North Carolina and expand into southeastern Virginia markets [1][2]. - This transaction is part of a broader strategy, with Weyerhaeuser having acquired over$1.1 billion in timberlands since early 2022, aligning with its growth targets [2]. Financial Aspects - The cash for the acquisition will primarily come from divestitures of non-core timberlands, which are expected to be completed in a tax-efficient manner [2]. - Upon completion, Weyerhaeuser will manage approximately 744,000 acres in North Carolina and 150,000 acres in Virginia, along with three mills and two distribution centers [2]. Operational Insights - The acquired timberlands are located in strong markets, with 81% planted pine acreage and an expected average annual harvest of 7.4 tons per acre over the first five years [4]. - The anticipated average annual timber free cash flow yield from the acquisition is projected to be 5.1% over the same period [4]. Company Background - Weyerhaeuser is one of the largest private owners of timberlands, managing approximately 10.4 million acres in the U.S. and has been a leader in sustainable forestry for over a century [3]. - In 2024, the company reported $7.1 billion in net sales and employed around 9,400 people [3].