Weyerhaeuser Co. (WY), a private owner of timberlands, announced Friday 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 the deal.
The Washington disposition is subject to customary closing conditions and is expected to close in the third quarter of 2021.
Earlier this week, the company completed its acquisition of 69,200 acres of high-quality Alabama timberlands from Soterra, a subsidiary of Greif, Inc., for approximately $149 million.
The company noted that 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.
Devin Stockfish, president and chief executive officer, said, “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.”
Separately, while announcing higher first-quarter results, Weyerhaeuser said it expects second-quarter Timberlands earnings and Adjusted EBITDA to be comparable to the first quarter.
For Real estate, Energy & Natural Resources, Weyerhaeuser anticipates second quarter earnings and Adjusted EBITDA will be moderately lower than first quarter 2021 due to the timing of real estate transactions. The company continues to expect full year 2021 Adjusted EBITDA for the segment will be approximately $255 million.
Further, for Wood Products, second-quarter earnings and Adjusted EBITDA are expected to be significantly higher than the first quarter.
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