Plum Creek invests in natural resource assets
Plum Creek Timber Co. has acquired an interest in about 144 million tons of production at four quarries from Vulcan Materials Co. for $75 million. The quarries are located near the Greenville and Spartanburg, S.C., markets.
Beginning in January 2013, Plum Creek expects to receive royalty payments from the production and sale of the crushed stone from the quarries for approximately 25 years.
“This is an attractive, cash-accretive investment in a familiar natural resource asset for Plum Creek,” said Rick Holley, president and CEO of Plum Creek. “The investment adds to our existing construction materials royalty streams, and the quarries will continue to be owned and operated by Vulcan, a leader in the industry. We are optimistic that the favorable growth prospects for aggregate demand in these markets will enhance future earnings potential.”