BOSTON and JACKSON, Miss. - The Hancock Timber Resource Group and Molpus Woodlands Group have purchased the 1.88 million acre timberland portfolio of Forest Capital Partners, the companies said today.
Terms of the transaction, which closed today, were not disclosed.
Hancock Timber is acquiring 376,000 acres in Louisiana, 573,000 acres in Oregon, 138,000 acres in Idaho and 264,000 acres in Washington.
Molpus is acquiring 286,000 acres in Minnesota, 110,000 acres in Louisiana and 138,000 acres in Idaho.
As part of the transaction, the vast majority of Forest Capital Partners' employees associated with the timberlands will be merged into operations of the respective new managers, the Hancock Timber Resource Group or the Molpus Woodlands Group.
"We are very pleased to acquire this large portfolio of timberlands. They are a natural fit for our clients and Hancock Timber—highly productive and well-managed by a company that, like us, places a strong emphasis on environmental stewardship. We look forward to continuing to manage these lands on a sustainable basis as working forests as well as maintaining the jobs associated with them," said Hancock Timber Resource Group president Dan Christensen. "We welcome our new colleagues into the organization and embrace their skills and experiences as well as their institutional knowledge of the timberlands they have been managing."
"This portfolio's timberlands are intensively managed, highly productive, and ideally situated near timber markets with competitive pricing. With the opportunity to partner on this transaction, we are able to provide key assets to our clients, which we will oversee from new forestry offices in Coeur d'Alene, Idaho and International Falls, Minnesota. We continue to be committed to the sound forestry stewardship practices historically associated with these properties," said Molpus Woodlands Group president Dick Molpus. "We will keep our focus on client objectives, and we look forward to working with new colleagues, employing innovative management and technologies towards sustainable forestry."
"This transaction is a highly innovative outcome for both our investors and our employees, and provides continued outstanding stewardship for the forests and forest communities alike," said Forest Capital Partners co-president Matt Donegan.
"We are very pleased to complete this transaction and ensure a smooth transition for our employees who will continue to diligently manage these forests," said Forest Capital Partners co-president Scott Jones.
He added that a small number of senior staff will remain with Forest Capital Partners to manage oil and gas assets retained on approximately 250,000 acres in Louisiana and to develop other opportunities.
Mr. Christensen and Mr. Molpus said that all of Forest Capital Partners' timberlands are third-party certified as sustainably managed and that both organizations intend to maintain the certification. All of Hancock Timber's timberlands in North America, Australia and New Zealand are third-party certified. All of Molpus Woodland Group's timberlands are third-party certified as well.
Greenhill & Co., LLC acted as exclusive financial adviser to Hancock Timber Resource Group and Molpus Woodlands Group on this transaction.
Source: The Hancock Timber Resource Group
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