FEDERAL WAY (dpa-AFX) - Weyerhaeuser Company (WY) announced it agreed 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 deal price is approximately C$120 million in cash, which includes Weyerhaeuser's manufacturing facility, all associated timber license assets in British Columbia and the value of working capital.
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.
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 C$15 million. 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.
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