Weyerhaeuser buys Plum Creek in $8.44B timber deal
Weyerhaeuser Co. is buying Plum Creek Timber Co. for $8.44 billion to form what is expected to be one of the world's biggest timberland and forest products companies.
The company will keep the Weyerhaeuser name and have more than 13 million acres of timberland, the companies said Sunday. It will be worth $23 billion based on current share prices.
Plum Creek shareholders will receive 1.60 shares of Weyerhaeuser for each Plum Creek share. Weyerhaeuser shares closed at $30.40 Friday. Weyerhaeuser also says it will buy $2.5 billion of company shares after the deal closes.
Weyerhaeuser, based in Federal Way, Washington, also says it may spin off its cellulose fibers business, which includes five pulp mills.
Plum Creek is based in Seattle.