Plum Creek Adds To Timber Base
Plum Creek Timber Co., Inc. has signed a $1.1 billion agreement to acquire approximately 501,000 acres of industrial timberlands, associated wind and mineral assets, and an interest in approximately 109,000 acres of high-value rural and development-quality lands from MeadWestvaco Corp.
Specifically, Plum Creek has agreed to acquire 501,000 acres of industrial timberlands in Alabama, Georgia, South Carolina, Virginia and West Virginia for $869 million; an investment in joint ventures consisting of 109,000 acres of high-value rural lands and development-quality lands near Charleston, SC for $152 million; subsurface rights, mineral rights and wind power assets associated with the timberlands for $65 million.
Rick Holley, Plum Creek CEO, comments, “These timberlands have a long history of excellent forest management. The high stocking levels and older age of the timberlands make them particularly attractive. These assets should integrate seamlessly into our existing timberland ownership in the Southeast and add to our presence in key markets.”
The timber harvest from the acquired lands is expected to average nearly 3 million tons annually over the next 10 years, growing Plum Creek’s total annual harvest more than 15% from recent levels.