- 501,000 acres of industrial timberlands in Alabama, Georgia, South Carolina, Virginia, and West Virginia for $869 million;
- An investment in joint ventures consisting of 109,000 acres of high-value rural lands and development-quality lands near Charleston, S.C., for $152 million;
- Subsurface rights, mineral rights and wind power assets associated with the timberlands for $65 million.
Following the completion of the transaction, the timber harvest from the acquired lands is expected to average nearly 3 million tons annually over the next 10 years, growing Plum Creek’s total annual harvest more than 15 percent from recent levels. The mineral and wind assets associated with the timberlands are expected to generate approximately $6 million of annual cash flow, assuming current commodity prices.Upon completion of the transaction, through a 50/50 joint venture formed by Plum Creek and MeadWestvaco, the companies plan to pursue an entitlement and development strategy for 87,000 acres of high-value lands over the next several years in the Charleston, S.C., market. In addition, Plum Creek will hold a 5 percent interest (valued at $12.5 million) in approximately 22,000 acres of residential, commercial and industrial properties that are actively being developed in the same market. Financing Plum Creek expects to use a combination of equity and debt to finance the acquisition, consistent with Plum Creek’s current credit profile and capital structure. Webcast Conference Call and Supplemental Information Plum Creek will hold a conference call today, Oct. 28, at 6:00 p.m. ET (3:00 p.m. PT) to discuss its third quarter earnings and this transaction. To access the live webcast and its supporting presentation material visit Plum Creek’s website at www.plumcreek.com and click on the “Investors” link. Investors without Internet access should dial 1-800-572-9852 at least 10 minutes prior to the start of the call, referencing Plum Creek’s conference call. Those wishing to access the call from outside the United States and Canada should dial 1-706-645-9676, also referencing Plum Creek’s conference call. Replay of the call will be available for 48 hours after completion of the live call and can be accessed at 1-855-859-2056 or 1-404-537-3406 (international calls), using the code 31587216. Plum Creek is among the largest and most geographically diverse private landowners in the nation with approximately 6.3 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest. For more information, visit www.plumcreek.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities 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 “believes,” “expects,” “may,” “will,” “should,” “seek,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates,” or the negative of those words or other comparable terminology. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions including, but not limited to, the completion of the transaction in the time frame, on the terms and in the manner currently anticipated, the cyclical nature of the forest products industry, our ability to harvest our timber, our ability to execute our acquisition strategy, the market for and our ability to sell or exchange non-strategic timberlands and timberland properties that have higher and better uses, and various regulatory constraints. These and other risks, uncertainties and assumptions are detailed from time to time in our filings with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, and the Securities Act of 1933, as amended. 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.