The massive timber giant will own 13 million acres.
The proposed $8.3 billion transaction, which both boards of directors approved unanimously, would constitute the largest private ownership of land in the US. The combined entity will retain the Weyerhaeuser name. “These two companies are already best-in-class timberland managers with a relentless focus on sustainable resource management,” says Plum Creek CEO Rick Holley.
“The breadth and diversity of our combined land and timber assets uniquely position the new company to capitalize fully on the improving housing market, continue to capture higher and better use land values across the combined portfolio, and create additional opportunities to build lasting value.”
Under the terms of the all-stock transaction, Plum Creek shareholders will receive 1.6 shares of Weyerhaeuser stock for every share of Plum Creek stock. Weyerhaeuser shareholders should wind up owning about two-thirds of the company’s common stock. For the third quarter, Weyerhaeuser’s net income stood at $180 million, while Plum Creek’s earnings hovered around the $100 million mark. Read more HERE.