Weyerhaeuser said on Sunday that it plans to buy 645,000 acres of timberland for about $2.65 billion and added that it was weighing a sale or spinoff of its homebuilder unit.
It also announced the appointment of Doyle Simons as its new chief executive, replacing Dan Fulton, who will serve as executive vice chairman in August before retiring in October.
Weyerhaeuser is buying the acreage through its acquisition of Longview Timber from Brookfield Asset Management, gaining lands in Washington and Oregon. The deal will expand the company’s holdings in the Pacific Northwest by 33 percent, to 2.6 million acres, and boost its overall holdings in the United States to 6.6 million acres.
As part of the deal, Weyerhaeuser will raise its quarterly dividend to 22 cents a share, from 20 cents a share.
Meanwhile, Weyerhaeuser plans to explore a potential sale of its homebuilding division, Weyerhaeuser Real Estate Company. The business, which includes Pardee Homes, is one of the country’s biggest builders of homes in the country.
“The board of directors and management team are committed to further enhancing value for all Weyerhaeuser shareholders,†Mr. Fulton said in a statement. “Given the improving fundamentals of the housing market, we believe now is a prudent time to explore strategic alternatives for this business.â€
