VC firm will sell Longview Timber and Longview Fibre Paper and Packaging in two separate transactions.
The venture capital firm Brookfield Asset Management Inc. has reached an agreement to sell its Longview Timber and Longview Fibre Paper and Packaging in two separate transactions. Combined, the sales are expected to generate about $3.675 billion for Brookfield.
Under terms of the first agreement, Brookfield will sell Longview Timber, which consists of about 645,000 acres of timberlands in the Pacific Northwest, to Weyerhaeuser for $2.65 billion including the assumption of debt.
Reid Carter, managing partner of Brookfield Timberlands, says, “Although we are selling our Longview timber assets, we believe that timberland investments provide significant benefits to institutional investment portfolios and have a strong long-term potential for growth. Going forward, we will continue to pursue new timberland investment opportunities through our private fund initiatives with institutional investment partners.”
Brookfield also agreed to sell its Longview Fibre Paper and Packaging assets to KapStone Paper and Packaging for $1.025 billion. Longview Fibre Paper and Packaging operates an integrated paper mill in Longview, Wash., and seven container plants in the Pacific Northwest. Longview Fibre Paper and Packaging produces kraft paper, containerboard and corrugated boxes.
“We acquired these timberlands and manufacturing assets as one business in 2007 and restructured the business, separating the manufacturing business from the timberlands and engaging in an operational turnaround of the manufacturing business by our private equity fund. While the timing of the sale transactions is coincidental, for investors in our funds these transactions represent monetization at excellent returns and puts each of these assets into the hands of strategic buyers who will be able to take them to the next level,” says Cyrus Madon, senior managing partner in Brookfield’s Private Equity Group.