#Canada #Princeton #Weyerhaeuser #Gorman Group #lumber mill

Weyerhaeuser's Strategic Move: Selling the Princeton Mill to Gorman Group

In a significant development, Weyerhaeuser Company (NYSE: WY) has announced its decision to sell its lumber mill located in Princeton, British Columbia, to the Gorman Group, a respected family-owned wood products manufacturer. This agreement marks a pivotal moment not only for both companies but also for the local community, as it signifies a continued commitment to sustainably sourced lumber production.

Key Details of the Transaction

The sale, valued at approximately $120 million CAD, encompasses the manufacturing facility along with all associated timber licenses in British Columbia. It also includes the mill's value of working capital, subject to standard purchase price adjustments upon completion. This deal not only confirms Weyerhaeuser’s intention to streamline its operations but also strengthens local business ties.

Weyerhaeuser and Gorman Group have enjoyed a considerable working relationship in Canada, with Gorman Bros. Lumber serving as the largest customer of the Princeton mill for years. Nick Arkle, CEO of Gorman Group, emphasized that the integration of the Princeton mill would fortify their operations, ensuring sustainability and job security for the surrounding communities.

Positive Community Impact

"We are grateful to all the dedicated employees who contributed to the success of our Princeton operations over the years," stated Devin W. Stockfish, President and CEO of Weyerhaeuser. He expressed appreciation for how the local community has always shown support for the mill and its workforce. The acquisition by Gorman Group aims to ensure that the mill continues to operate smoothly, fostering community ties and economic stability.

The Gorman Group boasts a long history of operations in British Columbia, with over 75 years in the industry, showcasing its dedication to quality and sustainability in wood products. This acquisition should further empower Gorman Group in expanding its operations while maintaining its ethos toward environmental responsibility.

Future Prospects

As per the agreement, the completion of the sale is anticipated in the third quarter of 2025, pending the satisfaction of customary closing conditions, including regulatory approvals. Following the closure, Weyerhaeuser is expected to show a gain from the sale but will also incur an estimated $15 million CAD in tax liabilities. Importantly, Weyerhaeuser will maintain its other operations across Canada unaffected by this transaction, ensuring they continue to deliver quality forestry products.

About the Parties Involved

Weyerhaeuser Company stands as a global leader in timberland ownership and management, operating sustainably for over a century. With control over approximately 10.4 million acres of timberlands, they have pioneered sustainable forestry practices. In 2024 alone, the company reported net sales of $7.1 billion while sustaining a workforce of around 9,400 people worldwide.

Gorman Group, recognized for its family-owned legacy and commitment to producing high-value lumber products, has divisions spread across Southern B.C. and Northern Washington State. The company employs around 900 individuals and is looking forward to integrating the Princeton mill into its family of operations, reinforcing job sustainability in the region.

With both organizations focused on creating a seamless transition, this acquisition heralds a positive outlook for the local lumber industry and the communities it serves. The collaboration between Weyerhaeuser and Gorman Group encapsulates a shared vision of sustainable growth and community commitment, which will undoubtedly resonate for years to come.