A multi-generational family-owned and operated company comprised of four divisions in Southern B.C. is adding another operation to its team.
On May 21, Weyerhaeuser Company announced that it had reached an agreement to sell its lumber mill in Princeton to Gorman Group, owners of the wood products manufacturer Gorman Bros. Lumber Ltd. headquartered in West Kelowna. The purchase price is approximately $120 million in cash and includes Weyerhaeuser's manufacturing facility, all associated limber assets in the province and the value of working capital.
"Weyerhaeuser's Princeton operation will be a natural fit with the Gorman Group," said Gorman Group chief executive officer Nick Arkle. "We've had a strong connection to the Princeton operation for many years, and we know firsthand the skill, commitment and quality that define its team.
Gorman Bros. Lumber is currently the Princeton mill's largest customer and the company has operated in Canada for almost 75 years, with offices and facilities in B.C. and south of the border. In addition to the Princeton mill, it also operates two sawmills, a remanufacturing plant, a plywood plant and a pole plant in Southern B.C., as well as one remanufacturing plant division in northern Washington state.
Arkle added that the Gorman Group is not only excited to add the Princeton Mill to its team but is also delighted to add its people to the Gorman Group family as well.
"This move will strengthen our company, support the sustainability of good jobs in our communities and help us continue developing the world-class wood products we're known for," he said. "This really will be a case of the whole being stronger than the sum of its parts, and we're looking forward to working together with First Nations, governments, communities and all our employees to make this a B.C. success story."
Princeton Mayor Spencer Coyne thanked Weyerhaeuser for being an integral part of the community and is looking forward to the next chapter with Gorman Group.
"Our history with Weyerhaeuser goes back nearly 50 years and in that time the company has been a major part of the fabric of our community," he said. "I also want to welcome Gorman Group to the community — we look forward to a long and productive relationship moving forward."
Weyerhaeuser is one of the world's largest private owners of timberlands and controls public timberlands managed under long-term licenses in Canada, in addition to the approximately 10.4 million acres in the United States. President Devin W. Stockfish said that the community has also been welcoming and supportive of the mill and its people and that it was important for Weyerhaeuser to sell to a local buyer with "deep roots in the region."
"Gorman has been a great customer and strategic partner, and we believe this will be a seamless transition that will position the mill for future success in a challenging operating environment — providing long-term certainty for the mill and the broader community," he said.
The sale is subject to customary closing conditions, which include a regulatory review, and the sale of the mill is expected to be completed in the third quarter of this year, with the forest tenures following over the upcoming months. Weyerhaeuser's other operations in Canada will not be affected, and the company will continue to operate the Princeton mill independently until the transaction is fully complete.
