Weyerhaeuser Co. (WY) Sunday announced the signing of definitive stock purchase agreement to acquire Longview Timber LLC from affiliates of Brookfield Asset Management for $2.65 billion. The transaction is subject to the satisfaction of customary closing conditions and is expected to close in July 2013.
The company expects the acquisition to be immediately accretive to funds available for distribution per share, upon closing. In conjunction with and subject to the completion of the acquisition, the company intends to increase its quarterly dividend from $0.20 per share to $0.22 per share beginning with the third quarter dividend, payable in September 2013.
The company intends to raise approximately $2.45 billion in a combination of debt and equity, in conjunction with the transaction.
The company also announced the appointment of Doyle Simons president and chief executive officer, effective August 1, 2013. Doyle Simons succeeds Dan Fulton, who Will be retiring as planned.
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