SEATTLE, Oct 03, 2005 (BUSINESS WIRE) -- Plum Creek Timber Company, Inc. (NYSE:PCL) todayannounced that it has signed a definitive agreement to purchaseapproximately 650,000 acres of timberland in the Upper Peninsula ofMichigan from Escanaba Timber LLC. The transaction, valued atapproximately $345 million, is subject to customary closingconditions. The transaction is expected to close in the fourth quarterof 2005.
The forestlands, which have been certified to the SustainableForestry Initiative(R) (SFI) standard, contain an attractive mix oftimber species and age profiles including mature mixed hardwood standsand conifer plantations. Plum Creek will continue to manage theseforests to the SFI standard, as it does all of its timberlands. Withthe addition of this land, the company will own and manageapproximately 1.2 million acres of productive forests in northernWisconsin and the Upper Peninsula of Michigan.
Plum Creek will sell a significant portion of the pulpwoodharvested from these lands to the NewPage Corporation Escanaba, Mich.,pulp and paper mill under the continuation of an existing long-termsupply agreement.
"This acquisition is consistent with Plum Creek's strategy ofmaking accretive timberland purchases," said Rick Holley, presidentand chief executive officer. "The addition of these well-managed landsexpands our participation in attractive hardwood timber markets andcomplements our current ownership in the region."
Plum Creek will finance the transaction using a combination of1031 like-kind exchange funds and debt.
Plum Creek is one of the largest private timberland owners in thenation, with approximately 8 million acres of timberlands in majortimber producing regions of the United States and 10 wood productsmanufacturing facilities in the Northwest.
SOURCE: Plum Creek Timber Company, Inc.
Plum Creek Timber Company, Inc.Media: Kathy Budinick, 206-467-3620Investors: John Hobbs, 800-858-5347