By Crystal Pecanha
Two leaders in the timber, land and forest product industry, Weyerhaeuser and Plum Creek, have made a proposal to shareholders to merge and create an estimated $23 billion company with the Weyerhaeuser name. According to a press release from Weyerhaeuser, together, they possess more than 13 million acres of very profitable timberland. Rick R. Holley is the chief executive officer for Plum Creek and future non-executive chairman of Weyerhaeuser’s board, which will be expanded to 13 directors. Holley states that, “With an extraordinary set of combined assets and the proven value creation records of both Weyerhaeuser and Plum Creek, the combined company will offer a compelling opportunity for shareholders.”
Holley also said that he looks forward to building this new company with Doyle R. Simons, President and CEO of Weyerhaeuser. The two organizations claim to have unparalleled expertise in timber, land and manufacturing and that the integration of these two industry leaders will be a winning combination with the largest private ownership of timberland in the U.S., recognized commitment to sustainable resource management, and a unique ability to capitalize on the housing recovery, among other strengths. Simons says they’ve also drawn from the best talent in each company to select the right leaders to take best practices from both companies and achieve their targets, serve their customers, and drive shareholder value over the long term. Shareholders from both companies must approve the merger, which is expected to close in early 2016.