Plum Creek sells interest in southern timberlands
Plum Creek Timber has entered into a joint venture with the Campbell Group, a timberland investment management company, involving 454,000 acres of timberlands in six southern states: Oklahoma, Arkansas, Mississippi, North Carolina, South Carolina and Georgia.
Under the terms of the agreement, Plum Creek will contribute the timberlands to the joint venture, and in return will receive a cash loan of $783 million contributed by Campbell. Plum Creek will use half the money to repay debt and the remainder for general corporate purposes, including share repurchases. Plum Creek will also receive a $705 million preferred interest in the joint venture.
The Campbell Group, based in Portland, Ore., will manage the joint venture lands for continued timber production. Campbell currently manages more than two million acres of timberland in 13 states. Campbell Group investors will receive a common interest worth approximately 91 percent of the joint venture’s common equity.
Seattle-based Plum Creek, a public company, owns approximately 8 million acres of timberland in 18 states, along with 10 wood products manufacturing facilities that make lumber, plywood and medium density fiberboard (MDF) in the Northwest.