Weyerhaeuser Company has acquired 84,300 acres of premium timberlands in Alabama for $244 million to enhance its Southern Timberlands portfolio and establish a more substantial market presence.

Target Information

Weyerhaeuser Company, a prominent timberland owner, has successfully acquired 84,300 acres of high-quality timberlands in Alabama for a total of $244 million. This acquisition is part of multiple transactions that encompass mature and highly productive timberlands, closely integrated with Weyerhaeuser's existing operations in the region. The newly acquired lands are expected to generate portfolio-leading cash flow and high harvest yields within the company's Southern Timberlands segment.

The target timberlands are situated in one of the most robust inland sawlog and fiber markets in the southeastern United States, with fee ownership comprised of 74 percent planted pine acreage. These lands are expected to produce an average harvest of 6.4 tons per acre, translating to an estimated 540,000 tons annually during the first decade of operation. This acquisition is also anticipated to yield an average Adjusted EBITDA of approximately $150 per acre, or $12.5 million annually, from timber operations within the same timeframe.

Industry Overview in Alabama

The timber industry plays a vital role in Alabama's economy, ranking among the state's top sectors for job creation and revenue generation. Alabama boasts a diverse range of timber products, inclu