SEATTLE, Sep 19, 2002 (BUSINESS WIRE) -- Plum Creek Timber Company, Inc.(NYSE:PCL) announced today that it has signed a definitive agreement to purchase309,000 acres of forestlands in the North Central U.S. from Stora Enso NorthAmerica Corp., a division of Stora Enso Oyj (NYSE:SEO), for $142 million incash.
Plum Creek expects to complete the acquisition in the fourth quarter of 2002.
The purchase consists of 306,000 acres of timberland in Northern Wisconsin and3,000 acres in the Upper Peninsula of Michigan. The forestlands contain adiversified mix of timber types and age profiles including mature mixed hardwoodstands, mixed natural conifer stands, and hardwood and conifer plantations.
Plum Creek will finance the transaction using funds available under an existingline of credit.
"Plum Creek already owns and manages 250,000 acres of productive forests inWisconsin. We will manage these new properties on a sustainable basis followingour environmental principles as we do with all of our properties," said RickHolley, Plum Creek's President and CEO. "This acquisition will continue PlumCreek's track record of accretive timberland purchases. The addition of thesewell-managed lands complements our current ownership and expands ourparticipation in attractive markets, especially the high-grade hardwoodsawtimber market. These lands include prime recreation and conservationproperties."
Plum Creek is one of the largest landowners in the nation with over 7.8 millionacres of timberlands in every region of the United States and ten wood productmanufacturing facilities in the Northwest.
This press release contains forward-looking statements within the meaning of thePrivate Litigation Reform Act of 1995, as amended. Some of these forward-lookingstatements can be identified by the use of forward-looking words such as"believes," "expects," "may," "will," "should," "seek," "approximately,""intends," "plans," "estimates," or "anticipates," or the negative of thosewords or other comparable terminology. A number of important factors could causeactual results to differ materially from those described in the forward-lookingstatements. Some of these factors include, but are not limited to, changes ingovernmental, legislative and environmental restrictions; catastrophic lossesfrom fires, floods, windstorms, earthquakes, volcanic eruptions, insectinfestations or diseases; changes in economic conditions and competition in ourdomestic and export markets; our failure to qualify as a REIT or our failure toachieve the expected competitive advantages of operating as a REIT; anunanticipated reduction in the demand for timber products and/or anunanticipated increase in the supply of timber products; our failure to makestrategic acquisitions or to integrate any such acquisitions effectively or,conversely, our failure to make strategic divestitures; the failure to meet ourexpectations with respect to our likely future performance; and other factorsdescribed in our filings with the Securities and Exchange Commission, which areavailable at the web site maintained by the Securities and Exchange Commissionat "http://www.sec.gov." It is likely that if one or more of the risksmaterializes, or if one or more assumptions proves to be incorrect, the currentexpectations of Plum Creek and its management will not be realized.Forward-looking statements speak only as of the date made, and neither PlumCreek nor its management undertakes any obligation to update or revise anyforward-looking statements.
More information on Plum Creek Timber Co. may be accessed at:http://www.businesswire.com/cnn/pcl.shtml.
Plum Creek Timber Company, Inc.
John Hobbs, 800/858-5347 (Investor Relations)
Bob Jirsa, 206/467-3626 (Corporate Affairs)
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