Weyerhaeuser to buy New Zealand timber

Pulp & Paper, Jun 1997

Weyerhaeuser Co. in April said it will purchase a total of 193,000 acres (78,000 ha) of softwood timberlands owned by Tasman Forestry (Nelson) Ltd., a 51% joint venture subsidiary of Fletcher Challenge Forests in New Zealand, for $185 million. Nelson holds about 148,000 acres of Crown Forest License cutting rights and approximately 45,000 acres of predominantly freehold land near the city of Nelson on the northern end of New Zealand's South Island.

Weyerhaeuser will be the 51% partner in the joint venture; responsible for management and marketing.The remaining 49% interest will continue to be held by RII New Zealand Forests I Inc., which is owned by institutional investors represented by UBS Resource Investments International.

Weyerhaeuser's Nelson acquisition is separate from a $400 million investment fund partnership formed between Weyerhaeuser and UBS for purchase of global softwood resources. Last year, Weyerhaeuser unsuccessfully bid to acquire 450,000 acres of timber owned by Forestry Corp. of New Zealand.

"We're very pleased to become part of New Zealand's world-class forest industry," said Weyerhaeuser CEO John W Creighton Jr. in a press release. "This is consistent with our long-term strategy to acquire timberlands and related assets outside North America."

The acquisition, which is scheduled to close June 30, is subject to approvals by the New Zealand government and the investors in RII New Zealand Forests I.