Weyerhaeuser Buys Timberlands and Weighs Selling Its Home-Building Unit

An user removes logs from a lorry during Weyerhaeuser's Ear Falls sawmill in Ontario.Rob LentzAn user removes logs from a lorry during Weyerhaeuser’s Ear Falls in Ontario.

7:02 p.m. | Updated

Weyerhaeuser pronounced on Sunday that it designed to buy 645,000 acres of country for about $2.65 billion and combined that it was weighing a sale or spinoff of a home-building unit.

Weyerhaeuser is shopping a acreage by a merger of Longview Timber from , gaining lands in Washington and Oregon.

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The understanding will enhance a company’s land in a Pacific Northwest by 33 percent, to 2.6 , and boost a altogether land in a United States to 6.6 . Weyerhaeuser will compensate for a understanding by lifting about $2.45 billion in debt and equity, including by loans from Morgan Stanley.

As partial of a deal, Weyerhaeuser will lift a quarterly multiplication to 22 cents a share, from 20 cents a share.

Weyerhaeuser also skeleton to try a intensity sale of a home-building division, a , or Wreco. The business, that includes , is one of a country’s biggest .

The association pronounced that it is hoing to take advantage of a improving housing market. Last year, a genuine estate multiplication reported scarcely $1.1 billion in revenue, adult 28 percent from a before year.

The association pronounced that it will cruise offered or spinning off Wreco, yet it might also confirm to reason onto a unit.

“The house of directors and government group are committed to offer enhancing value for all Weyerhaeuser shareholders,” Daniel S. Fulton, Weyerhaeuser’s arch executive, pronounced in a statement. “This routine will assistance safeguard that WRECO achieves a full intensity while we continue to build on Weyerhaeuser’s lane record of .”

It also announced a appointment of Doyle , a house member and former arch executive of Temple-Inland, as a new arch executive. He will attain Mr. Fulton, who is coming a company’s imperative retirement age of 65 and who will offer as executive clamp authority in Aug before timid in October.

“As former C.E.O. and authority of Temple-Inland, Doyle has a proven lane record of pushing opening to grasp results,” Chuck Williamson, Weyerhaeuser’s chairman, said. “He has low knowledge in a products industry, extended business and organic imagination and a passion for operational excellence.”

Article source: http://dealbook.nytimes.com/2013/06/16/weyerhaeuser-buys-timberlands-and-weighs-divestiture-of-its-homebuilding-unit/

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