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SEATTLE - Weyerhaeuser Company (NYSE: WY), a $18.26 billion market cap forest products company currently trading at $25.18, has announced an agreement to sell its Princeton, British Columbia lumber mill to the Gorman Group for approximately $120 million CAD in cash. The deal, which includes the manufacturing facility and associated timber licenses, is expected to close in the third quarter of 2025, with the transfer of forest tenures to follow. According to InvestingPro analysis, Weyerhaeuser maintains strong financial health with liquid assets exceeding short-term obligations and operates with moderate debt levels.
The Gorman Group, a family-owned wood products manufacturer with operations in British Columbia and Washington state, has been linked to the Princeton mill for many years, with Gorman Bros. Lumber being its largest customer. The acquisition is seen as an opportunity to integrate the Princeton operations with the Gorman Group’s existing business, which employs 900 people across various divisions. For investors interested in deeper analysis, InvestingPro offers comprehensive research reports covering Weyerhaeuser and 1,400+ other US stocks, providing actionable intelligence for smarter investment decisions.
Weyerhaeuser’s president and CEO, Devin W. Stockfish, expressed gratitude to the employees and community for their support over the years. He emphasized the importance of a local buyer with strong regional ties, suggesting that the transition will benefit the mill and community by providing stability in a challenging operating environment.
Nick Arkle, CEO of the Gorman Group, also commented on the acquisition, stating that the Princeton mill’s team will strengthen their company and support job sustainability. He anticipates collaborative efforts with First Nations, governments, and communities to create a success story in British Columbia.
The transaction is subject to customary closing conditions, including regulatory review. Weyerhaeuser anticipates recognizing a gain from the sale and expects to incur a tax liability of around $15 million CAD. The company’s other Canadian operations remain unaffected, and it will continue to independently operate the Princeton mill until the transaction’s completion.
Weyerhaeuser, a leader in sustainable forestry, manages over 10 million acres of timberlands and generated $7.1 billion in net sales in 2024. The company maintains a notable 3.34% dividend yield and has consistently paid dividends for 55 consecutive years. The Gorman Group, soon to mark 75 years in the wood products business, is recognized for its high-value lumber products and commitment to community and environmental stewardship. InvestingPro subscribers can access additional insights, including 8 key investment tips and detailed financial metrics that help evaluate the company’s long-term potential.
The information in this article is based on a press release statement.
In other recent news, Weyerhaeuser Company reported its first-quarter 2025 earnings, revealing a slight miss on Wall Street’s expectations. The company posted earnings per share of $0.11, which fell short of the forecasted $0.12, and revenue came in at $1.76 billion, missing the expected $1.81 billion. Despite this, DA Davidson maintained a Buy rating for Weyerhaeuser, with a price target of $36.00, highlighting the company’s resilience in the face of an uncertain housing market. Analysts noted the positive impact of an improving lumber pricing environment on Weyerhaeuser’s Wood Products and Timberland segments.
Additionally, the company’s shareholders approved an executive compensation plan and elected the board of directors during the Annual Meeting of Shareholders. The appointment of KPMG LLP as the independent registered public accounting firm for 2025 was also ratified. Furthermore, Weyerhaeuser increased its quarterly base dividend by 5% to $0.21 per share. The company continues to focus on carbon capture and renewable energy projects, with significant developments expected over the next decade. These recent developments reflect Weyerhaeuser’s strategic direction and operational focus amid ongoing market challenges.
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