Weyerhaeuser (WY) Confirms Acquisition of 69.2K Acres of Timberlands in Southwest Alabama from Greif Inc. (GEF) Subsidiary Soterra for $149M

February 25, 2021 8:26 AM EST

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Weyerhaeuser Company (NYSE: WY) today announced an agreement to purchase 69,200 acres of high-quality Alabama timberlands from Soterra, a subsidiary of Greif, Inc. (NYSE: GEF) for approximately $149 million. The acquisition is comprised of highly productive timberlands situated in southwest Alabama, approximately 100 miles north of Mobile.

Key attributes include:

  • Strategically located in one of the strongest inland sawlog and fiber markets in the U.S. South, with a deep and expanding base of customers and future export opportunities
  • Fee simple ownership, highly integrated with existing Weyerhaeuser timberland operations
  • Excellent operability, with significant all-weather logging access and well-developed road network
  • Well-stocked timber inventory, including 76-percent plantation acreage with average age of 14 years, and an opportunity for increased productivity over time
  • Immediate and sustained cash flow, with anticipated 10-year average Adjusted EBITDA of approximately $7 million annually

"This transaction is a great opportunity to enhance our portfolio by acquiring high-quality, well-managed timberlands with low operating risk," said Devin W. Stockfish, president and chief executive officer. "These timberlands are located in favorable markets and well-integrated with our existing supply chain, and we have strong relationships with a diverse and reliable set of customers in the area. We expect these timberlands to drive long-term value for our company."

Weyerhaeuser owns or manages nearly 600,000 acres and also operates two mills and a nursery in Alabama. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2021.

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