Brookfield Asset Management Inc. has struck a deal to acquire Longview Fibre Co. for $2.15-billion, including assumed debt.
Brookfield already owns about 4.6 per cent of Longview. With the transaction, Brookfield will acquire 235,000 hectares of timberland in Washington and Oregon.
In addition, Brookfield will acquire one of the largest pulp and paper complexes in North America at Longview, Wash., and a network of 15 corrugated container plants in 12 states.
"Longview Fibre represents an excellent opportunity to acquire one of the largest and highest quality portfolios of freehold timberlands in the U.S., furthering our strategy of investing in high quality assets that generate long term sustainable cash flows that increase in value over time," managing partner Sam Pollock said in a release.
"We already manage two million acres (800,000 hectares) of timberlands in North and South America, including 635,000 acres on the British Columbia west coast, proximate to Longview's timberlands in the Pacific Northwest."
Brookfield said it will operate the specialty paper and packaging business under the Longview Fibre name. The Canadian firm said it has arranged for $1.35-billion of debt financing to fund the acquisition.