Weyerhaeuser announced an agreement to sell its timberlands and manufacturing business in Uruguay to a consortium led by BTG Pactual’s Timberland Investment Group (TIG) for USD 402.5 million in cash. The transaction is subject to customary purchase price adjustments and closing conditions, including regulatory review, and is expected to close in the fourth quarter of 2017.
According to the announcement, the transaction includes over 300,000 acres (120,000 hectares) of timberlands in northeastern and north central Uruguay, as well as a plywood and veneer manufacturing facility, a cogeneration facility, and a seedling nursery.
Doyle R. Simons, Weyerhaeuser’s president and CEO, commeneted:
“Our Uruguay business is a unique combination of high-quality timberlands, value-added manufacturing operations and skilled and dedicated people, and this transaction will best position the business to reach its full potential. I am proud of the contributions our Uruguay employees have made to the success of Weyerhaeuser and the contributions they will make to the future success of these operations.”
Weyerhaeuser Uruguay and the buyer consortium will continue to operate separately until the transaction closes.
In 1Q2017 Weyerhaeuser reported 20.4% increase of net sales and 35.1% increase of Adjusted EBITDA.
The company is one of the world’s largest private owners of timberlands. It owns or controls more than 13 million acres of timberlands, primarily in the U.S., and manage additional timberlands under long-term licenses in Canada. The company manages these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products. In February 2016, Weyerhaeuser merged with Plum Creek Timber Company. In 2016, we generated $6.4 billion in net sales and employed approximately 10,400 people who serve customers worldwide.