SEATTLE (News release) -- Weyerhaeuser Company announced an agreement to acquire approximately 117,000 acres of high-quality timberlands in North Carolina and Virginia from Roanoke Timberlands LLC, a subsidiary of Roseburg Forest Products, for $375 million. Comprised of mature, highly productive timberlands, the acreage will be well-integrated with existing Weyerhaeuser timberland and mill operations in North Carolina, will expand the company's footprint into attractive markets in southeastern Virginia and will offer substantial alternative value opportunities. The acquisition is expected to deliver immediate and sustained portfolio-leading cash flows within the company's Southern Timberlands business.

Key attributes of the acquisition:

• Located in strong and growing sawlog and fiber markets in the U.S. South
• Primarily fee ownership with 81 percent planted pine acreage, strong site productivity and favorable all-weather logging operability
• Mature planted pine age class expected to produce an average annual harvest of 7.4 tons per acre (or 860,000 tons) over the first five years
• Expected to deliver an average annual timber free cash flow yield of 5.1 percent over the first five years
• Significant optionality to capture additional upside from real estate, natural climate solutions and natural resource opportunities

"These are exceptional timberlands, and we're excited and well-positioned to capitalize on this unique off-market opportunity," said Devin W. Stockfish, president and chief executive officer. "As we've demonstrated over the last several years, we are committed to active portfolio management across our unmatched timber holdings and have remained disciplined in our approach to growing the value of our timberlands -- including through strategically targeted private transactions like the one we're announcing today. Upon closing of this acquisition, we will have acquired more than $1.1 billion of high-quality timberlands since the beginning of 2022, achieving the multi-year growth target we announced in September 2021. Over a similar period, we've also returned a significant amount of cash back to shareholders through dividends and share repurchase and announced a compelling engineered wood products growth opportunity -- all while maintaining a strong balance sheet. Looking forward, we will continue to evaluate portfolio enhancement opportunities that improve our timber cash flow and returns, while also balancing other levers across our flexible capital allocation framework to drive superior long-term value for our shareholders."

The acquisition is expected to close in the third quarter and is subject to customary closing conditions. Cash outlay for the transaction is expected to be predominantly sourced from upcoming divestitures of non-core timberlands, and the company anticipates completing these transactions in a tax-efficient manner. When the acquisition is complete, Weyerhaeuser will own or manage approximately 744,000 acres of timberlands in North Carolina and 150,000 acres in Virginia, along with three mills, two distribution centers and additional field offices -- employing more than 600 people across the two states.