Railroads & Clearcuts

Plum Creek acquisition of Georgia-Pacific's timberlands

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of RR&CC info
on Plum Creek

compiled by George Draffan
www.endgame.org

 

 

In July 2000, it was announced that Plum Creek would acquire Georgia-Pacific's timberlands for about $4 billion.

G-P's timberlands are held by a seaparate operationg corporation called The Timber Company. The Timber Company had 1999 sales of about $840 million compared with $460 million for Plum Creek.

Plum Creek would thus become the second largest timberland owner in the United States, with close to 8 million acres in 19 states. International Paper currently owns more than 12 million acres.

It was also announced that Plum Creek would assume a 10-year agreement to supply wood to Georgia-Pacificís manufacturing facilities.

It was expected that up to three new members would be added to the Plum Creek board of directors, including two to be agreed upon by Plum Creek and Georgia-Pacific. Rick Holley would remain president and CEO of the new enlarged Plum Creek, while G-P Timber Campany president and CEO Donald L. Glass was expected to become the new chief operating officer and a member of the board of directors of the combined company. Plum Creek intends to retain substantially all of the G-P Timber Company's employees as well as its Atlanta Georgia office.

G-P's Timber Company land (acreage by state) consisted of the following:

Alabama

104,000

Oregon

286,000

Arkansas

803,000

Pennsylvania

32,000

Florida

572,000

South Carolina

143,000

Georgia

973,000

Texas

27,000

Louisiana

121,000

Virginia

91,000

Mississippi

847,000

West Virginia

220,000

North Carolina

116,000

Wisconsin

251,000

Oklahoma

134,000

   

Total Acreage

4,720,000

 

The acquisition would add G-P's 4.7 million acres to lands and timber already held by Plum Creek:

Region

Acres of land

Billion board feet
of timber

Manufacturing
facilities

Washington

310,000

2.1

 

Montana & Idaho

1,600,000

6.8

9

Arkansas & Louisiana

538,000

2.4

2

Maine

905,000

 

 

TOTAL

3,353,000

11.3

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