Weyerhaeuser Company announced its agreement to acquire 117,000 acres of timberlands in North Carolina and Virginia for $375 million to enhance its Southern Timberlands portfolio.

Information on the Target

Weyerhaeuser Company is set to acquire approximately 117,000 acres of high-quality timberlands located in North Carolina and Virginia from Roanoke Timberlands LLC, a subsidiary of Roseburg Forest Products, for a total consideration of $375 million. This vast acreage, known for its mature and highly productive timberlands, is strategically positioned to integrate seamlessly with Weyerhaeuser's existing timberland and mill operations in North Carolina. The acquisition not only expands the company's reach into promising markets in southeastern Virginia but also presents significant alternative value opportunities.

Following the acquisition, Weyerhaeuser expects to achieve robust portfolio-leading cash flows within its Southern Timberlands segment. Key aspects of the target include its location in strong and emerging sawlog and fiber markets in the U.S. South, with a composition of 81 percent planted pine acreage famed for strong productivity and favorable logging conditions.

Industry Overview in the U.S. South

The southern United States is recognized as a vital hub for the timber industry, characterized by its expansive forests and rich biodiversity. The region boasts a growing demand for timber products, driven primarily by