Gorman Group Purchases Princeton, B.C. Sawmill
Weyerhaeuser has announced it has reached an agreement to sell its lumber mill in Princeton, British Columbia, to the Gorman Group, owners of Gorman Bros. Lumber Ltd., a family-owned wood products manufacturer headquartered in West Kelowna, B.C. The purchase price is approximately $120 million CAD in cash, which includes Weyerhaeuser’s manufacturing facility, all associated timber license assets in British Columbia and the value of working capital, which will be subject to customary purchase price adjustments at closing.
Weyerhaeuser and Gorman Group have a long-standing relationship in Canada. Gorman Bros. Lumber is currently the Princeton mill’s largest customer, and Gorman Group has operated in Canada for more than 75 years, with offices and facilities in B.C. and Washington state.
“Weyerhaeuser’s Princeton operation will be a natural fit with the Gorman Group,” says Nick Arkle, CEO, Gorman Group. “We’ve had a strong connection to the Princeton operation for many years, and we know firsthand the skill, commitment and quality that define its team. We’re delighted to welcome this mill and its people into the Gorman Group family, as this move will strengthen our company, support the sustainability of good jobs in our communities and help us continue developing the world-class wood products we’re known for. This really will be a case of the whole being stronger than the sum of its parts. We’re looking forward to working together with First Nations, governments, communities and all our employees to make this a B.C. success story.”
The transaction is subject to customary closing conditions, including regulatory review, with the sale of the mill expected to be completed in third quarter 2025, and the forest tenures to follow over the ensuing months. Weyerhaeuser expects to recognize a gain on the sale and incur a tax liability of approximately $15 million CAD. Weyerhaeuser’s other operations in Canada will not be affected by this transaction, and the company will continue to operate the Princeton mill independently of the Gorman Group until the transaction closes.
Latest News
Babine Forest Products Contests $1 Million Fine For Fatal Explosion
Babine Forest Products Ltd. is contesting a $1 million penalty imposed by WorkSafeBC for the January 2012 sawmill fire and explosion that killed two employees and injured 20 others. Babine Forest Products said it is…
Interfor To Shut Down Two Washington Operations Citing Market Conditions
googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-1548381510056-0’); }); Citing tough market conditions and a challenging fiber supply, Interfor announced Tuesday that it will curtail operations at its Beaver sawmill and at its planer in Forks. The Beaver operation will…
U.S. Lumber Prices To Rise As Increased Home Building Offsets Decreased Chinese Exports
An increase in U.S. housing construction is expected to significantly raise lumber prices by the end of the year, offsetting the depressing effect China’s recent downturn in property investment has had on lumber demand. Capital…
West Fraser Investment In Pine Beetle Zone Faces Uncertain Future
The warning bell has been sounding for several years that the opportunity to extract economic value from pine beetle-killed trees would come to an end. West Fraser has focused on salvaging dead pine trees for…
Find Us On Social
Newsletter
The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.
Subscribe/Renew
Timber Processing is delivered 10 times per year to subscribers who represent sawmill ownership, management and supervisory personnel and corporate executives. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative.