Advertisement
U.S. markets closed
  • S&P Futures

    5,304.25
    -4.00 (-0.08%)
     
  • Dow Futures

    40,140.00
    -36.00 (-0.09%)
     
  • Nasdaq Futures

    18,465.00
    -38.75 (-0.21%)
     
  • Russell 2000 Futures

    2,145.20
    +6.80 (+0.32%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0779
    -0.0014 (-0.13%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • Vix

    13.01
    +0.23 (+1.80%)
     
  • GBP/USD

    1.2621
    -0.0001 (-0.01%)
     
  • USD/JPY

    151.2870
    -0.0850 (-0.06%)
     
  • Bitcoin USD

    70,777.23
    +1,255.34 (+1.81%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,408.68
    +240.61 (+0.60%)
     

Corporate News Blog - Weyerhaeuser Divests its Timberlands and Manufacturing Business in Uruguay

Research Desk Line-up: Enviva Partners Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 7, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Seattle based Weyerhaeuser Co. (NYSE: WY). The REIT Company, which is one of the world's largest private owners of timberlands, announced on June 05, 2017, that it has signed an agreement with a consortium led by BTG Pactual's Timberland Investment Group (TIG) and other investors to sell its Uruguay based timberlands and manufacturing business. The all-cash transaction is valued at $402.5 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:

http://protraderdaily.com/register/

Discover more of our free reports coverage from other companies within the Lumber, Wood Production industry. Pro-TD has currently selected Enviva Partners, LP (NYSE: EVA) for due-diligence and potential coverage as the Company reported on May 10, 2017, its financial and operating results for Q1 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Enviva Partners when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on WY; also brushing on EVA. Go directly to your stock of interest and access today's free coverage at:

http://protraderdaily.com/optin/?symbol=WY

http://protraderdaily.com/optin/?symbol=EVA

Commenting on the sale of the Uruguay business, Doyle R. Simons, President and CEO of Weyerhaeuser said:

"Our Uruguay business is a unique combination of high-quality timberlands, value-added manufacturing operations and skilled and dedicated people, and this transaction will best position the business to reach its full potential. I am proud of the contributions our Uruguay employees have made to the success of Weyerhaeuser and the contributions they will make to the future success of these operations."

Details of the asset sale agreement

As per the asset sale agreement, Weyerhaeuser's Uruguay assets include over 300,000 acres (120,000 hectares) of timberlands in north-eastern and north central Uruguay plus a plywood and veneer manufacturing facility, a cogeneration facility, and a seedling nursery.

The consideration of $402.5 million being paid by the consortium is subject to purchase price adjustments at the close of the transaction. Weyerhaeuser expects that the taxes related to the transaction will be very minimal. Weyerhaeuser expects that transaction to be completed in Q4 2017 and is subject to regulatory approvals and other closing conditions. Till the time that the transaction is finalized, Weyerhaeuser Uruguay and the consortium will operate separately.

Background

In October 2016, Weyerhaeuser had announced that the Company was looking at various strategic alternatives for its timberlands and manufacturing operations in Uruguay. In February 2016, Weyerhaeuser merged with Plum Creek Timber Company, Inc., after which the former was looking at maximizing shareholder value and at the same time it was looking at the long-term success of its core business. Since the merger, Weyerhaeuser has sold off many of its non-core assets.

In May 2016, Weyerhaeuser sold off its Cellulose Fibers pulp mills to International Paper for $2.2 billion in cash. In June 2016, the Company sold off its Liquid Packaging Board business to Nippon Paper Industries for $285 million in cash. In the same month, the Company announced the closure of its lumber mill and plywood mill in Columbia Falls, Montana. In October 2016, Weyerhaeuser announced the sale of its printing papers business to One Rock Capital Partners, LLC.

About Weyerhaeuser Company

Weyerhaeuser Company was founded in 1900 by Frederick Weyerhaeuser with 900,000 acres of timberland purchased from the Northern Pacific Railway and set up a small office in Tacoma, Washington. In September 2016, Weyerhaeuser shifted to its new corporate headquarters at Seattle, Washington. The new office building boasts of a LEED Platinum certification by the United States Green Building Council, and Green Globes certification by the Green Building Initiative. At present, Weyerhaeuser Company has grown into a real estate investment trust (REIT) and is the world's largest private owners of timberlands. The Company owns / controls more than 13 million acres of timberlands, most of which are concentrated in the US and some of the timberlands are based in Canada and are managed under long-term licenses. Weyerhaeuser manages these timberlands on a sustainable basis in compliance with internationally recognized forestry standards.

Weyerhaeuser is also one of the largest manufacturers of wood products. It manufactures a wide range of Engineered Lumber, OSB (Oriented strand board), plywood and MDF (Medium-density fiberboard) panels and lumber. For the FY16, the Company's net sales was approximately $6.4 billion, and it has an employee strength of over 10, 400 people.

Last Close Stock Review

On Tuesday, June 06, 2017, the stock closed the trading session at $33.41, slightly climbing 0.09% from its previous closing price of $33.38. A total volume of 2.24 million shares have exchanged hands. Weyerhaeuser's stock price advanced 7.60% in the past six months and 7.29% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 11.03%. The stock is trading at a PE ratio of 50.32 and has a dividend yield of 3.71%. The stock currently has a market cap of $25.12 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

Advertisement