Weyerhaeuser Company recently announced the completion of its acquisition of 69,200 acres of high-quality Alabama timberlands from Soterra, a subsidiary of Greif, Inc., for approximately $149 million earlier this week. Separately, the company announced an agreement to sell 145,000 acres of timberlands in the North Cascades region of Washington to Hampton Resources for $266 million. The company expects to recognize a gain on the sale and anticipates no tax liability in conjunction with this transaction.
The Washington disposition is largely comprised of high-elevation terrain in the North Cascades range, with approximately 25 percent of the acres located in Chelan County on the east side of the mountains. Weyerhaeuser acquired the property through the acquisition of Longview Timber in 2013. It primarily supplies Hampton's nearby lumber mill in Darrington, Wash., and does not supply Weyerhaeuser's internal mills or strategic export customers. The property also has the highest operating costs and lowest site productivity and Douglas-fir mix in the company's western portfolio, and it is not expected to materially contribute to near-term or future Adjusted EBITDA.
"These transactions exemplify our ongoing effort to strategically optimize and upgrade our timberland portfolio," said Devin W. Stockfish, president and chief executive officer. "Our Alabama acquisition will grow our near-term and long-term cash flow, and the Washington sale completes our targeted large-scale divestitures of non-strategic acreage in the West. We will continue to seek prudent opportunities to enhance our portfolio with high-quality, well-managed timberlands that will drive long-term value for shareholders."
Weyerhaeuser owns or manages nearly 1.3 million acres and also operates two mills, two nurseries and several other sites in Washington, including its company headquarters in Seattle. The Washington disposition is subject to customary closing conditions and is expected to close in the third quarter of 2021.