Weyerhaeuser completes sale of Princeton lumber mill to Gorman Group

Published 02/09/2025, 22:22
Weyerhaeuser completes sale of Princeton lumber mill to Gorman Group

SEATTLE - Weyerhaeuser Company (NYSE:WY), currently valued at $18.67 billion by market capitalization, has completed the sale of its lumber mill in Princeton, British Columbia, to the Gorman Group, the company announced Tuesday. The transaction, which was initially announced in May, includes the mill facility and associated British Columbia timber licenses.

Weyerhaeuser received approximately $60 million upon the sale of the lumber facility, with additional proceeds expected when the timber licenses transfer in the coming months. The timber license transfer remains subject to regulatory review and other customary closing conditions.

The company recognized a gain on the sale and anticipates incurring a tax liability of approximately $11 million related to the transaction.

Weyerhaeuser, one of the world’s largest private timberland owners, currently owns or controls approximately 10.4 million acres of timberlands in the U.S. and manages additional public timberlands under long-term licenses in Canada. The company generated $7.1 billion in net sales in 2024 and employs about 9,400 people. InvestingPro analysis shows the company has maintained dividend payments for 55 consecutive years, though it currently faces challenges with weak gross profit margins of 17.25%. For deeper insights into Weyerhaeuser’s financial health and valuation metrics, explore the comprehensive Pro Research Report available on InvestingPro.

The Gorman Group, the buyer in this transaction, is a family-owned business operating in British Columbia and Washington state. Founded in 1951, the company runs four divisions in Southern British Columbia and one remanufacturing plant in northern Washington, employing 900 people across its operations.

The information in this article is based on a press release statement from Weyerhaeuser Company.

In other recent news, Weyerhaeuser Company reported its second-quarter earnings for 2025, showing a slight miss on earnings per share (EPS). The company posted an EPS of $0.12, just below the forecasted $0.13. However, revenue was stronger than expected, reaching $1.9 billion, which surpassed forecasts by $10 million. This positive revenue outcome contributed to a favorable market reaction. Additionally, Weyerhaeuser’s board of directors declared a quarterly base cash dividend of $0.21 per share, set to be paid on September 12, 2025. In terms of analyst perspectives, DA Davidson maintained its Buy rating for Weyerhaeuser, with a price target of $35.00, following the company’s financial results. These developments indicate a continued interest in Weyerhaeuser’s financial performance and outlook.

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