CatchMark Closes $43.3M Acquisition of 14,923 Acres of Prime Timberlands near Southeast Georgia Coast
Thursday, November 2nd, 2017
CatchMark Timber Trust, Inc. announced that the company has completed the acquisition of 14,923 acres of prime timberlands near the southeast coast of Georgia for $43.3 million, excluding closing costs. The timberlands in Long and McIntosh counties, the Coastal Georgia Acquisition, expand CatchMark's positioning in one of the most competitive wood baskets of the U.S. South, increasing its regional holdings by 36%. The acquisition includes 72% pine plantations with stocking of 81 tons per acre. Approximately 92% of the inventory volume is pine and 65% of the inventory volume is chip-n-saw or sawtimber with an average pine plantation age of 19 years. The transaction's harvest productivity is expected to be 7.6 tons per acre per year, adding approximately 110,000 tons per year to CatchMark's harvest over the next decade. The transaction includes a favorable long-term supply agreement and the timberlands' location provides proximity to a significant number of local mill customers, enhancing the merchantability of CatchMark's harvests in the region.
CatchMark funded the acquisition with net proceeds from its recently-closed public equity offering.