Weyerhaeuser Company expands Timberland holdings with $244m acquisition

Weyerhaeuser Company, a leading player in the global timberland market, has announced a significant expansion of its Southern Timberlands business. The company has secured 84,300 acres of prime timberlands in Alabama through acquisitions totaling $244 million. This strategic move is set to bolster Weyerhaeuser’s portfolio with high-quality, mature timberlands that align seamlessly with its existing operations.

Major Acquisition Enhances Timberland Portfolio

The recent transactions encompass mature and highly productive timberlands located in one of the most robust inland sawlog and fiber markets in the U.S. South. The acquired land features 74 percent planted pine acreage, renowned for its strong site productivity. With an average expected harvest of 6.4 tons per acre annually over the first decade, these new assets promise substantial returns. The mature planted pine stands are anticipated to yield approximately 540,000 tons annually.

The acquisitions are projected to deliver an average Adjusted EBITDA of about $150 per acre, translating to an estimated $12.5 million annually from timber operations during the initial ten years. These figures highlight the strategic value of the acquisition, reinforcing Weyerhaeuser’s commitment to enhancing shareholder returns through disciplined investment.

Strategic Growth and Future Outlook

Devin W. Stockfish, President and Chief Executive Officer of Weyerhaeuser Company, emphasized the significance of these transactions. Stockfish noted that the acquisitions reflect the company’s disciplined approach to timberland growth and its confidence in the long-term value appreciation of the asset class. He added that with these transactions, Weyerhaeuser has completed approximately $775 million towards its target of $1 billion in disciplined timberland investments by the end of 2025.

The acquisition process involved multiple transactions, including one that closed in the second quarter of 2024 for $48 million. The remaining transactions are under contract and are expected to conclude by the year’s end, contingent on customary closing conditions. Once finalized, Weyerhaeuser will manage approximately 695,000 acres of timberlands in Alabama, alongside two mills, a Timberlands office, and a seed orchard. This expansion will support more than 350 employees in the state.

A Legacy of Sustainability and Innovation

Founded in 1900, Weyerhaeuser Company stands as one of the world’s largest private timberland owners, with approximately 10.5 million acres of timberlands in the U.S. and 14 million acres managed under long-term licenses in Canada. The company has been a global leader in sustainability, managing its timberlands in compliance with internationally recognized sustainable forestry standards. Beyond timberlands, Weyerhaeuser is a major manufacturer of wood products and operates additional business lines including real estate, climate solutions, energy, and natural resources. In 2023, Weyerhaeuser generated $7.7 billion in net sales and employed around 9,300 people worldwide. The company is traded on the New York Stock Exchange under the symbol WY.