Weyerhaeuser to Acquire Longview Timber for $2.65 Billion in Stock (WY, BAM)

Weyerhaeuser to Acquire Longview Timber for $2.65 Billion in Stock (WY, BAM)


On Sunday, forestry products manufacturer Weyerhaeuser Company (WY) announced that it is purchasing Longview Timber from Brookfield Asset Management (BAM) for $2.65 billion in stock.

The acquisition will give Weyerhaeuser more than 645,000 acres of land in Canada, bolstering its timber holdings by about a third in the Pacific Northwest.

The Federal Way, Washington-based company said it plans to close the acquisition as soon as possible in July of 2013. The company also stated that in conjuction with the deal, and subject to the completion of the acquisition, it plans to increase its third quarter dividend from 20 cents per share to 22 cents per share.

In order to fund the acquisition, the company said it will offer 28 million additional common shares in a registered public offering.

Also announced on Sunday was that Doyle Simon will be taking over a WY CEO on August 1, replacing Dan Fulton, who is retiring.

Weyerhaeuser shares were up 86 cents, or +3.04%, during pre-market trading on Monday. The stock is up +1.69% year-to-date.

The Bottom Line
Shares of Weyerhaeuser (WY) have a dividend yield of 3.11% based on Friday’s closing price of $28.29 and the company’s annualized dividend payout of 80 cents per share.

Weyerhaeuser Company (WY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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