), a well renowned forest products company, announced to have
successfully completed acquiring Longview Timber LLC for roughly
$2.65 billion from Brookfield Asset Management Inc. The
transaction was originally announced on Jun 16, 2013.
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WEYERHAEUSER CO (WY): Free Stock Analysis
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Weyerhaeuser paid the transaction value through funds raised from
issuances of debt and equity.
Approximately 645,000 acres of timberlands in the Washington and
Oregon asset base has been added to Weyerhaeuser's portfolio.
This has increased the company's timberland assets in Pacific
Northwest to 2.6 million acres, reflecting an increase of 33%
while its total ownership of U.S. timberlands has reached roughly
6.6 million acres.
Weyerhaeuser expects the acquisition to enhance its funds
available for distribution and hence it contemplates raising its
quarterly dividend for the third quarter 2013 to 22 cents from 20
cents. Also, the acquisition is expected to fetch $20 million in
synergies within two years of the completion of the transaction.
We believe the acquired assets will bode well for Weyerhaeuser's
growth prospects over the long run. The company is slated to
released its second quarter 2013 financial results on Jul 26.
Currently, the Zacks Consensus Estimate for the second quarter is
30 cents while that for 2013 and 2014 are pegged at $1.13 and
Weyerhaeuser currently has a $16.1 billion market capitalization.
The stock carries a Zacks Rank #3 (Hold). The company's prime
Universal Forest Products Inc.
) reported its second quarter results on Jul 17. The company rode
high on the back of double-digits revenue growth in all five
market segments while its adjusted earnings per share came in at
79 cents, up 17.9% year over year and above the Zacks Consensus
Estimate of 72 cents.
Two other peer companies that are slated to release their
earnings soon are
) on Aug 6, 2013 and
Plum Creek Timber Co. Inc.
) on Jul 29, 2013.