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Investing.com -- Weyerhaeuser (NYSE:WY) has reached an agreement to sell its lumber mill located in Princeton, BC to the Gorman Group.
The sale, which includes Weyerhaeuser’s manufacturing facility, all associated timber license assets in BC, and the value of working capital, is valued at approximately C$120MM in cash, equivalent to roughly US$86.5MM.
The capacity of the Princeton mill, as stated in Weyerhaeuser’s 2024 Fact Book, is 300 million board feet (mmfbm), implying a valuation of around US$288 per mmfbm. The completion of the mill’s sale is expected in mid-Q3 2025, with the transfer of forest tenure taking place in the months that follow.
The sale of the mill is expected to result in a gain for Weyerhaeuser, which in turn is anticipated to bring about a tax liability of approximately C$15MM.
According to RBC, the mill comprises a significant ~33% of the company’s lumber capacity in Canada, and 100% of its lumber capacity in BC.
This is seen as relevant due to the likely increase in softwood lumber duties in the second half of 2025 and potential Section 232 tariffs that could be enacted. These duty and tariff issues are expected to have influenced the mill’s valuation.
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