Federal Way, Washington, USA, 04 February 2011 -- (BUSINESS WIRE) -- Weyerhaeuser Company (NYSE:WY) today announced the completion of the sale of approximately 82,000 acres of timberlands in southwestern Washington to the Hancock Timber Resource Group for approximately USD 200 million.
This will contribute approximately USD 150 million in earnings in the first quarter. The sale is part of an ongoing process to optimize the company's timberlands portfolio to ensure its ownership fits the long-term strategic needs of the company.
"Today's sale represents the continued efforts to strategically rebalance our timberlands," said Dan Fulton, Weyerhaeuser president and CEO. "We have a competitive advantage in growing and processing Douglas fir, and the sale focuses our Western operations on managing that species. While the land sold is high-quality, productive timberlands, it no longer fits our long-term strategic plan."
Following the sale, Weyerhaeuser will own or manage more than 1 million acres of timberland in Washington and will operate in more than 20 locations, including its corporate headquarters in Federal Way. Weyerhaeuser employs nearly 3800 people in the region. Nationwide, Weyerhaeuser will continue to own and manage more than 6 million acres of timberland.
"Trees and land are the core of the company," Fulton said. "We are the largest private landowner in the Pacific Northwest, and we remain committed to this region for the long term."
"These highly productive timberlands represent an excellent investment opportunity for our clients, and we're very pleased to be able to acquire them," said Dan Christensen, president of the Hancock Timber Resource Group. "This transaction is part of our ongoing effort to secure high-quality timberlands for our investors."
The Hancock Timber Resource Group, a division of Hancock Natural Resource Group, Inc., an operating company of Manulife Asset Management, is based in Boston, Massachusetts and manages approximately 5.3 million acres of timberland across the United States and in Brazil, Canada, New Zealand, and Australia. Additional information about Hancock Timber may be found at www.hancocktimber.com.
Weyerhaeuser Company, one of the world's largest forest products companies, began operations in 1900. The company manages its timberland on a sustainable basis in compliance with internationally recognized forestry standards. At the end of 2010, Weyerhaeuser employed approximately 14,000 employees in 10 countries and had generated USD 6.6 billion in sales for the year. The company's stock trades on the New York Stock exchange under the symbol WY. Additional information is available at www.weyerhaeuser.com.