Plum Creek Timber Company, Inc., (NYSE:PCL) today announced it has acquired an interest in approximately 144 million tons of production at four quarries from Vulcan Materials Company (NYSE: VMC) for $75 million. The quarries are located near the Greenville and Spartanburg, South Carolina markets. Beginning in January 2013, Plum Creek expects to receive royalty payments from the production and sale of the crushed stone from the quarries for approximately 25 years.
“This is an attractive, cash-accretive investment in a familiar natural resource asset for Plum Creek,” said Rick Holley, president and chief executive officer of Plum Creek. “The investment adds to our existing construction materials royalty streams, and the quarries will continue to be owned and operated by Vulcan, a leader in the industry. We are optimistic that the favorable growth prospects for aggregate demand in these markets will enhance future earnings potential.”
Plum Creek is one of the largest landowners in the nation and the most geographically diverse, with approximately 6.4 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest. For more information on Plum Creek, visit www.plumcreek.com.
This press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995 as amended. Some of these forward-looking statements can be identified by the use of forward-looking words such as "expects" and "will." The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the demand for construction materials, operational risks and the state of the general economy. It is likely that if one or more of the risks materializes, or if one or more assumptions prove to be incorrect, the current expectations of Plum Creek and its management will not be realized. Forward-looking statements are not guarantees of performance, and speak only as of the date made, and neither Plum Creek nor its management undertakes any obligation to update or revise any forward-looking statements.