Louisiana-Pacific Sells Timberland for $290 Millio
Portland, OR, Oct. 20--Louisiana-Pacific Corp. sold about 463,000 acres of timberland located in southeast Texas for $290 million, bringing to a close the timberland portion of its divestiture program.
In a press release Monday, the building materials company said the timberland will be managed by Molpus Woodlands Group, a timberland investment management organization based in Jackson, Miss., on behalf of an institutional investor.
The transaction will be completed as an installment sale, which will result in Louisiana-Pacific realizing $257 million in cash in the fourth quarter and the remaining cash will be available in future years.
Louisiana-Pacific said the total achieved through this divestiture program will exceed the high end of its $600 million to $700 million target by more than $50 million.
The company said it has reduced its debt and increased its financial flexibility with the proceeds.
The company originally intended to sell 935,000 acres of timberland along with its lumber plywood, industrial panels, wholesale and distribution businesses.
