Weyerhaeuser Co. will purchase Plum Creek Timber Co. Inc. in a deal announced on Sunday that the two companies said would create a $23 billion timber, land and forest products company, the largest in the United States.
The new company, which will keep the Weyerhaeuser name, will manage more than 13 million acres of timberland that will allow it to drive economies of scale and capitalize on the U.S. housing recovery, the companies said.
The merger combines the two largest owners of timberland in the U.S. Weyerhaeuser, based in Federal Way, Washington, manages 6.9 million acres, primarily in the Pacific Northwest.
Seattle-based Plum Creek owns about 6.2 million acres of timberlands located in over 19 states. That includes Plum Creek’s nearly 400,000 acres of land in the Moosehead Lake region of Maine, 16,900 of which has been targeted for development.