Weyerhaeuser to Sell Princeton, B.C., Lumber Mill to Gorman Group

Rhea-AI Summary

Weyerhaeuser (NYSE: WY) has agreed to sell its Princeton, British Columbia lumber mill to Gorman Group for $120 million CAD in cash. The deal includes the manufacturing facility, timber license assets, and working capital. Gorman Bros. Lumber, the mill's largest customer, has operated in Canada for over 75 years. The transaction is expected to complete in Q3 2025, with forest tenures transfer following in subsequent months.

Weyerhaeuser anticipates recognizing a gain on the sale while incurring a $15 million CAD tax liability. The company's other Canadian operations will remain unaffected, and it will continue operating the Princeton mill independently until closing. The sale aims to ensure long-term stability for the mill and community in a challenging operating environment.

Positive

• Sale price of $120 million CAD will generate cash and a gain for Weyerhaeuser
• Strategic sale to largest customer ensures business continuity and operational stability
• Transaction helps optimize Weyerhaeuser's portfolio in challenging operating conditions

Negative

• Company will incur $15 million CAD tax liability from the sale
• Divestment reduces Weyerhaeuser's manufacturing presence in British Columbia

Insights

Corporate Finance Analyst

Weyerhaeuser's $120M CAD sale of Princeton mill represents strategic divestiture in challenging lumber market while maintaining Canadian presence.

Weyerhaeuser's decision to sell its Princeton, B.C. lumber mill to the Gorman Group for $120 million CAD represents a strategic divestiture in what's described as a "challenging operating environment." This transaction accomplishes several objectives for Weyerhaeuser while maintaining operational continuity for the community.

The deal structure is notable for including not just the physical manufacturing facility but also valuable timber license assets in British Columbia. This comprehensive package makes strategic sense as these licenses represent critical raw material input rights that enhance the mill's long-term viability. The buyer, Gorman Bros. Lumber, is already the mill's largest customer, suggesting operational synergies and potentially improved vertical integration for Gorman.

From Weyerhaeuser's financial perspective, the company expects to recognize a gain on the sale while incurring a tax liability of approximately $15 million CAD. This indicates the sale price exceeds the book value of these assets, representing a positive financial outcome despite divesting productive capacity. The cash infusion improves Weyerhaeuser's liquidity position while preserving its broader Canadian operational footprint, as the company explicitly states its other Canadian operations remain unaffected.

The timing of this transaction is significant, with closing expected in Q3 2025 for the mill, followed by the forest tenure transfers over subsequent months. This phased approach likely addresses regulatory requirements while providing operational continuity. For a lumber producer like Weyerhaeuser, divesting a single mill while maintaining its broader Canadian presence suggests targeted portfolio optimization rather than a broader geographical exit strategy.

Agreement with local buyer includes manufacturing facility and associated timber licenses in British Columbia

SEATTLE, May 21, 2025 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today announced it has reached an agreement to sell its lumber mill in Princeton, British Columbia, to the Gorman Group, owners of Gorman Bros. Lumber Ltd., a family-owned wood products manufacturer headquartered in West Kelowna, B.C. The purchase price is approximately $120 million CAD in cash, which includes Weyerhaeuser's manufacturing facility, all associated timber license assets in British Columbia and the value of working capital, which will be subject to customary purchase price adjustments at closing.

Weyerhaeuser and Gorman Group have a long-standing relationship in Canada. Gorman Bros. Lumber is currently the Princeton mill's largest customer, and Gorman Group has operated in Canada for more than 75 years, with offices and facilities in B.C. and Washington state.

"We are grateful to all the dedicated employees who contributed to the success of our Princeton operations over the years," says Devin W. Stockfish, president and chief executive officer for Weyerhaeuser. "The community has always been incredibly welcoming and supportive of our mill and people, and it was important for us to sell to a local buyer with deep roots in the region. Gorman has been a great customer and strategic partner, and we believe this will be a seamless transition that will position the mill for future success in a challenging operating environment — providing long-term certainty for the mill and the broader community."

"Weyerhaeuser's Princeton operation will be a natural fit with the Gorman Group," says Nick Arkle, chief executive officer of the Gorman Group. "We've had a strong connection to the Princeton operation for many years, and we know firsthand the skill, commitment and quality that define its team. We're delighted to welcome this mill and its people into the Gorman Group family, as this move will strengthen our company, support the sustainability of good jobs in our communities and help us continue developing the world-class wood products we're known for. This really will be a case of the whole being stronger than the sum of its parts. We're looking forward to working together with First Nations, governments, communities and all our employees to make this a B.C. success story."

The transaction is subject to customary closing conditions, including regulatory review, with the sale of the mill expected to be completed in third-quarter 2025, and the forest tenures to follow over the ensuing months. Weyerhaeuser expects to recognize a gain on the sale and incur a tax liability of approximately $15 million CAD. Weyerhaeuser's other operations in Canada will not be affected by this transaction, and the company will continue to operate the Princeton mill independently of the Gorman Group until the transaction closes.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls approximately 10.4 million of acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in North America and operates additional business lines around product distribution, climate solutions, real estate, energy and natural resources, among others. In 2024, the company generated $7.1 billion in net sales and employed approximately 9,400 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser's common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

ABOUT THE GORMAN GROUP
The Gorman Group is a multi-generational family owned and operated company comprised of four divisions in Southern British Columbia (two sawmills, a remanufacturing plant, a plywood plant, and a pole plant) and one remanufacturing plant division in northern Washington state. Within these operations, it directly employs 900 employees. Founded in 1951, the company will soon celebrate 75 years of continuous operations in the wood products business with a brand name that is respected around the world. Its longevity and consistency are largely attributed to its focus on high value lumber products sold in the home finishing and renovation markets, its commitment to the land and generational thinking, as well as to the people, within and without the company, who live in the communities in which it operates.

FORWARD-LOOKING STATEMENTS
This news release contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, with respect to the occurrence and timing of the sale of the company's lumber manufacturing facility and related assets in Princeton, British Columbia, as well as the company's expected recognition of a tax gain and estimated tax liability related to the sale. Forward-looking statements may be identified by our use of certain words in such statements, including without limitation words such as "expects," "expected," "will" and similar words, terms and phrases using such terms and words. All forward-looking statements speak only as of the date hereof, are based on current expectations and involve and are subject to a number of assumptions, risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, those identified in our 2024 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC. In addition, Weyerhaeuser may not be able to complete the transaction within the stated time period, or at all, because of a number of factors, including without limitation: the occurrence of any event, change or other circumstances that could give rise to a termination of the transaction under the terms of the purchase and sale agreement governing the transaction, or the failure to satisfy other closing conditions including, but not limited to, regulatory approvals. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects. The company undertakes no obligation to update these forward-looking statements after the date of this news release. 

For more information contact:
Analysts – Andy Taylor, 206-539-3907	David Murray - 250-803-8531
Media – Nancy Thompson, 919-861-0342

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SOURCE Weyerhaeuser Company

FAQ

How much is Weyerhaeuser (WY) selling its Princeton lumber mill for?

Weyerhaeuser is selling its Princeton, B.C. lumber mill to Gorman Group for approximately $120 million CAD in cash, including the manufacturing facility, timber license assets, and working capital.

When will Weyerhaeuser's Princeton mill sale close?

The sale is expected to close in the third quarter of 2025, with forest tenures transfer following in subsequent months, subject to regulatory review and customary closing conditions.

What tax impact will the Princeton mill sale have on Weyerhaeuser?

Weyerhaeuser expects to incur a tax liability of approximately $15 million CAD from the sale, though the company anticipates recognizing an overall gain on the transaction.

Who is buying Weyerhaeuser's Princeton lumber mill?

The Gorman Group, owners of Gorman Bros. Lumber Ltd., a family-owned wood products manufacturer based in West Kelowna, B.C. with over 75 years of operations in Canada, is purchasing the mill.

Will the Princeton mill sale affect Weyerhaeuser's other Canadian operations?

No, Weyerhaeuser's other operations in Canada will not be affected by this transaction. The company will continue to operate the Princeton mill independently until the sale closes.