Weyerhaeuser (WY) announced it has a signed definitive stock purchase agreement to acquire Longview Timber from affiliates of Brookfield Asset Management (BAM) for $2.65B, which includes the assumption of debt. The transaction is subject to the satisfaction of customary closing conditions and is expected to close in July 2013. The company is acquiring approximately 645,000 acres of unique, high-quality timberlands in Washington and Oregon...This transaction will expand Weyerhaeuser's timber holdings in the Pacific Northwest by 33% to approximately 2.6M acres and increase the total amount of U.S. timberlands it owns or controls to approximately 6.6M acres. The company expects to reach annual synergies of approximately $20M within two years of closing. Upon closing, Weyerhaeuser expects the acquisition to be immediately accretive to the company's funds available for distribution per share. In conjunction with and subject to the completion of the acquisition, the company intends to increase its quarterly dividend from 20c per share to 22c per share beginning with the Q3 dividend, payable in September 2013. Weyerhaeuser expects that the cash flows and synergies from the acquisition will enhance its ability to further increase its dividend in the future...In conjunction with this transaction, Weyerhaeuser intends to raise approximately $2.45B in a combination of debt and equity. The company has a committed senior unsecured bridge facility from Morgan Stanley.
- Mergers, Acquisitions & Takeovers
- Brookfield Asset Management