Private equity firm American Industrial Partners signs agreement to acquire Weyerhaeuser's Northwest Hardwoods division, including its seven sawmills, expects to close deal in August
June 20, 2011
– American Industrial Partners ("AIP") has entered into a definitive agreement to acquire the worldwide hardwoods and industrial products business unit from Weyerhaeuser Company. The transaction is expected to close in August of this year. The future business will operate as Northwest Hardwoods, Inc., headquartered in Tacoma, WA, with operations in the United States, Canada, China, Japan and Hong Kong.
Northwest Hardwoods, Inc., with approximately 1,000 employees, is the leading manufacturer of high quality hardwood lumber in North America. It manufactures and sells 15 species of hardwood lumber, specializing in alder, oak, maple, cherry, walnut, ash, and hickory and operates through a network of seven primary sawmills, four concentration yards, four remanufacturing plants and one merchandizing log yard, all in the United States.
"We could not be more pleased to add Northwest Hardwoods to our portfolio of market leading operating companies. AIP is acquiring a business with experienced employees, outstanding quality products, highly automated and efficient sawmills, and an attractive worldwide customer base that relies on Northwest Hardwoods for essential products and services. The Northwest Hardwoods name is the most respected in the industry and has been the recognized 'Gold Standard' for hardwood products for nearly 40 years," said Rick Hoffman of AIP.
"AIP builds and invests in great businesses with North American headquarters and we believe Northwest Hardwoods represents an exceptionally attractive investment opportunity. We are pleased to partner with management and all the talented employees of Northwest Hardwoods. We respect the long and successful history of the Company and greatly value the relationships that it has with its customers, suppliers, land owners, State, Provincial and Federal governments, and employees and look forward to continuing and improving those relationships over time," said Joel Stanwood of AIP. Mr. Stanwood further commented, "The Company's revenues are related to housing starts and general repair and remodeling in the housing sector. As these depressed markets improve in the years ahead, the Company is well positioned to meet the demand with its excellent hardwood timber supply relationships and extensive, modern and low cost manufacturing footprint."
Nancy Arend, Vice President of Northwest Hardwoods, said, "We very much look forward to partnering with the American Industrial Partners team. We have developed a go forward operating agenda focused on expanding our customer base and geographic sales regions, implementing manufacturing best practices, and continuing to enhance our market leading cost position on a global basis."
David Weyerhaeuser, VP Sales and Marketing of Northwest Hardwoods, noted, "Our customers have been extremely loyal to us over many decades and we very much appreciate that. We reward our customers' loyalty by providing innovative products, delivered with exceptional service, all at affordable prices". Mr. Weyerhaeuser went on to say, "As a standalone company we expect to offer our customers flexibility, fast market response times, continuity of supply and an entrepreneurial 'can do' attitude".
About American Industrial Partners
Founded in 1989, American Industrial Partners is an operationally-focused private equity firm that makes control investments in North American based industrial businesses, and seeks to significantly impact business value by applying the financial, operational, and technical expertise of its Partners and Advisory Board. AIP has managed three prior investment funds which total over $1 billion of equity capital and is currently investing its $405.5 million American Industrial Partners Capital Fund, IV, LP. For more information, please visit www.aipartners.com or call 212-627-2360.