Oct. 28, 2013, 5:44 PM
- Plum Creek Timber (PCL) will acquire 501K acres of timberlands in Alabama, Georgia, South Carolina, Virgina, and West Virginia for $869M and rural and development-quality lands near Charleston, South Carolina, for $152M from MeadWeastvaco (MWV). The deal also includes $65M for subsurface rights and wind-power assets on the timberlands.
- In conjunction, the 2 companies formed a joint venture to develop the South Carolina lands.
- The majority of the proceeds will be distributed to MeadWestvaco shareholders.
- Plum Creek announced it intends to finance the acquisition by offering 14.1M shares (2.115M overallotment) in a follow-on. The sale would be good for proceeds of $700M at today's close.
- MeadWestvaco PR, Plum Creek Timber PR
PCL vs. ETF Alternatives
Plum Creek Timber Co Inc is a real estate investment trust. It owns and manages timberlands in the United States. Its products include lumber products, plywood, medium density fiberboard, and related by-products, such as wood chips.
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