#Canada #Princeton #Weyerhaeuser #Gorman Group #Princeton BC

Weyerhaeuser Completes Sale of Princeton Lumber Mill to Gorman Group

In a significant development in the timber industry, Weyerhaeuser Company has announced the successful completion of the sale of its lumber mill located in Princeton, British Columbia, to the Gorman Group. This strategic move was first revealed back in May and encompasses the associated timber licenses specific to this British Columbia operation, with those licenses set to be transferred in a subsequent agreement.

The financial terms of the sale reflect Weyerhaeuser's ongoing strategy to optimize its operations and focus on sustainable management of timber resources. The company received approximately $60 million USD at the closing of the sale, with additional proceeds expected upon the arrival of the timber licenses later this year. However, the company must also account for an estimated tax liability of around $11 million as part of this transaction.

Weyerhaeuser, established in 1900, stands as one of the largest private timberland owners globally, with control over about 10.4 million acres in the United States and additional public timberlands in Canada. Throughout its over a century of operation, it has maintained a leadership role in sustainable forestry practices, ensuring all its timberlands are managed to comply with internationally recognized standards. In 2024, Weyerhaeuser reported net sales of $7.1 billion and employed roughly 9,400 people worldwide, being recognized as a significant player in the North American wood products industry.

On the other end of the transaction, the Gorman Group brings a wealth of experience to the table. This multi-generational family-operated business encompasses various divisions in Southern British Columbia, including sawmills, a remanufacturing plant, a plywood plant, and a pole plant, employing around 900 individuals. Since its inception in 1951, the Gorman Group has built a respectable reputation within the wood products market by focusing on high-value lumber products, catering mainly to the home finishing and renovation sectors. Their 75 years of continuous operation have fostered a committed approach to both the environment and the communities within which they operate.

In the coming months, the completion of the timber license transfer will be monitored, and it is anticipated that customary closing conditions and regulatory approvals will define the transaction's pace. As the landscape of lumber production and supply chains continues to evolve, both Weyerhaeuser and the Gorman Group aim to leverage this transition for mutual benefit and sustainable growth.

Weyerhaeuser's strategic focus on efficiency and sustainability sets it apart in the industry, while Gorman Group's commitment to quality and innovation positions it securely for future development within the timber sector. This sale not only highlights the dynamism within the lumber industry but also underscores the importance of adaptability in navigating the complexities of market demands and ecological stewardship.