Despite the news that it would be merging with one of the world’s largest forest product companies, it was business as usual at Plum Creek Timber Company’s facilities in Columbia Falls and Evergreen on Monday.
On Sunday, Weyerhaeuser and Plum Creek announced plans to merge and form one company valued at more than $23 billion. The deal calls for Weyerhaeuser to buy Plum Creek for $8.4 billion. The combined companies will hold more than 13 million acres of timberland across the United States.
Tom Ray, vice president of northwest resources and manufacturing in Columbia Falls, said it was too early to speculate how the merger would impact Plum Creek’s plywood plant and stud mill in Evergreen and its board mill, plywood plant and medium density fiberboard plant in Columbia Falls. More than 750 people are employed by Plum Creek in Flathead County.
“What we told our employees this morning and what we’re telling the community is that it’s business as usual here today and we’re continuing to operate like we always do,” he said. “But we’re excited to be joining forces with Weyerhaeuser. They’re a great company and we’re excited about the future.”
In a press release, Plum Creek and Weyerhaeuser officials said the combined company would be worth more than $23 billion and be “the world’s premier timber, land and forest products company.” Officials say the sale would close early next spring and the companies would operate under the Weyerhaeuser name. Officials said the merger would result in about $100 million in annual savings for the companies.
“With an extraordinary set of combined assets and the proven value creation records of both Weyerhaeuser and Plum Creek, the combined company will offer a compelling opportunity for shareholders,” said Rick R. Holley, chief executive officer for Plum Creek. “These two companies are already best-in-class timberland managers with a relentless focus on sustainable resource management. The breadth and diversity of our combined land and timber assets uniquely position the new company to capitalize fully on the improving housing market, continue to capture Higher and Better Use land values across the combined portfolio, and create additional opportunities to build lasting value.”
Under the terms of the agreement, Plum Creek shareholders will receive 1.6 shares of Weyerhaeuser for each Plum Creek share held. Following the closing, Weyerhaeuser shareholders would own about 65 percent of the company and Plum Creek shareholders would own 35 percent.
Plum Creek employs more than 1,200 people nationwide and started as a small logging company in Minnesota in 1944. It opened its first sawmill in Columbia Falls two years later and has since been a cornerstone of the community. It is currently based in Seattle.
Weyerhaeuser is also based in the Seattle area and currently employs more than 12,800 people worldwide. It started in 1900 when Frederick Weyerhaeuser purchased 900,000 acres of Washington timberland from the Northern Pacific Railroad in what was at that point the largest private land transaction in American history. It opened its first sawmill in Everett, Washington two years later. Since then it has grown into a massive corporation with operations on four continents.