NEW YORK, June 9 /PRNewswire/ -- U.S. Timberlands Company, L.P.
(Nasdaq: TIMBZ) today announced that its affiliate, U.S. Timberlands Yakima,
L.L.C., has entered into an agreement to purchase 56,000 acres of timberland
in central Washington for about $60 million in cash from Boise Cascade
Corporation.
John M. Rudey, Chairman and CEO, stated "These properties will add
approximately 480 million board feet of prime merchantable timber, principally
Douglas-fir and Ponderosa Pine, to our timberlands portfolio. This
acquisition should provide an attractive and accretive diversification to our
Oregon holdings. In addition, we expect to enter into one or more log supply
agreements with Boise Cascade Corporation prior to closing the acquisition."
The transaction is subject to approval under the Hart-Scott-Rodino Act and
completion of financing. The purchase is expected to close during the third
quarter.
U.S. Timberlands Company, L.P. owns 615,000 fee acres of timberland and
cutting rights on 3,000 acres of timberland containing total merchantable
timber volume estimated to be approximately 2.1 billion board feet in Oregon
east of the Cascade Range. U.S. Timberlands specializes in the growing of
trees and the sale of logs and standing timber. Logs harvested from the
timberlands are sold to unaffiliated domestic conversion facilities. These
logs are processed for sale as lumber, molding products, doors, millwork,
commodity, specialty and overlaid plywood products, laminated veneer
lumber, engineered wood I-beams, particleboard, hardboard, paper and other
wood products. These products are used in residential, commercial and
industrial construction, home remodeling and repair and general industrial
applications as well as a variety of paper products. U.S. Timberlands also
owns and operates its own seed orchard and produces approximately five million
conifer seedlings annually from its nursery, approximately half of which are
used for its own internal reforestation programs, with the balance sold to
other forest products companies. Additional information on U.S. Timberlands
is available on the Company's corporate web site at
http://www.ustimberlands.com.
Certain information discussed in this press release may constitute
forward-looking statements within the meaning of the federal securities law.
Although U.S. Timberlands believes that expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it can give
no assurance that its expectations will be achieved. Forward-looking
information is subject to certain risks, trends, and uncertainties that could
cause actual results to differ materially from those projected. Such risks,
trends and uncertainties include the highly cyclical nature of the forest
products industry, economic conditions in export markets, the possibility that
timber supply could increase if governmental, environmental or endangered
species policies change, and limitations on U.S. Timberlands' ability to
harvest its timber due to adverse natural conditions or increased governmental
restrictions. For a more complete description of factors which could impact
U.S. Timberlands and the statements contained herein, reference should be made
to U.S. Timberlands' filings with the United States Securities and Exchange
Commission.
SOURCE U.S. Timberlands Company, L.P.
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Related links:
http://www.ustimberlands.com
Company News On-Call:
http://www.prnewswire.com/comp/128507.html or fax,
800-758-5804, ext. 128507
CONTACT:
Greg Byrne, Chief Financial Officer of U.S.
Timberlands Company, L.P., 212-755-1100; or Stefanie King,
212-704-8291, or Denise Roche, 212-704-4533, both of Edelman
Financial
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