SEATTLE, Oct. 12, 2017 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced the redemption of its 21 percent ownership interest in the Twin Creeks Timber, LLC joint venture ("Twin Creeks") for $107.5 million in cash. The Company also announced an agreement to sell 100,000 acres of Southern Timberlands to Twin Creeks for $202.5 million. The sale includes 80,000 acres of timberlands in Mississippi and 20,000 acres in Georgia and is expected to close by year end.
Effective December 31, 2017, the Company will also terminate the agreements under which it has managed the Twin Creeks timberlands. Following termination of these agreements, Weyerhaeuser will have no further responsibilities or obligations related to Twin Creeks. The company does not expect to recognize a material gain or loss on the redemption of its ownership interest.
"Through these transactions, we are simplifying our operations to focus on management of our own timberlands while continuing to strategically optimize our timberland portfolio," said Doyle R. Simons, president and chief executive officer.
Twin Creeks was formed as a joint venture between Plum Creek Timber Company, Inc. and several institutional investors. Following its merger with Plum Creek, in February 2016, Weyerhaeuser assumed Plum Creek's investment in the joint venture and became the manager of the Twin Creeks timberlands.
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control nearly 13 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products. Our company is a real estate investment trust. In February 2016, we merged with Plum Creek Timber Company, Inc. In 2016, we generated $6.4 billion in net sales and employed approximately 10,400 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.
FORWARD LOOKING STATEMENTS
This communication contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, with respect to the company's expectations concerning the closing of its sale of timberlands. There is no guarantee that events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on the company's operations, financial condition or results of operations. The company undertakes no obligation to update these forward-looking statements after the date of this news release.
For more information contact:
Analysts — Beth Baum, 206-539-3907
Media— Anthony Chavez, 206-539-4406
SOURCE Weyerhaeuser Company