Weyerhaeuser Announces Plans to Purchase Longview Timber, Some Grays Harbor Property
Upon closing, Weyerhaeuser expects the acquisition to be immediately accretive to the company’s funds available for distribution per share. In conjunction with and subject to the completion of the acquisition, the company intends to increase its quarterly dividend from $0.20 per share to $0.22 per share beginning with the third quarter dividend, payable in September 2013. Weyerhaeuser expects that the cash flows and synergies from the acquisition will enhance its ability to further increase its dividend in the future.
“We believe our company is uniquely positioned to maximize the value of these timberlands,” said Dan Fulton, Weyerhaeuser president and chief executive officer. “The acquired timberlands are highly complementary to our existing acreage in Washington and Oregon, where we have more than 100 years of experience managing Douglas fir. By increasing our high-value timber holdings west of the Cascade mountain range, we will leverage our infrastructure as well as our expertise in silviculture, logistics and marketing, giving us a distinct competitive advantage both domestically and with export markets.
“Importantly, this transaction delivers immediate value to our shareholders, and enhances Weyerhaeuser’s ability to increase the quarterly dividend,” Fulton continued. “We recognize that these timberlands have been well managed by a seasoned and experienced team and we look forward to welcoming those highly talented employees to Weyerhaeuser.”