Plum Creek – PCL – Invests in Natural Resource Assets in South Carolina

NYSE:PCL) announced it has acquired an interest in approximately 144 million tons of production at four quarries from Vulcan Materials Company (NYSE: VMC) for $75 million. The quarries are located near the Greenville and Spartanburg, South Carolina markets. Beginning in January 2013, Plum Creek expects to receive royalty payments from the production and sale of the crushed stone from the quarries for approximately 25 years.

“This is an attractive, cash-accretive investment in a familiar natural resource asset for Plum Creek,” said Rick Holley, president and chief executive officer of Plum Creek. “The investment adds to our existing construction materials royalty streams, and the quarries will continue to be owned and operated by Vulcan, a leader in the industry. We are optimistic that the favorable growth prospects for aggregate demand in these markets will enhance future earnings potential.”

About Plum Creek – PCL

Plum Creek (PCL) is one of the largest landowners in the nation and the most geographically diverse, with approximately 6.4 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest. We continually assess the value of the trees growing on our lands, the value of the natural resources (rocks, sand, minerals, oil and gas) that reside beneath the surface, and the value of the land itself. Our job, as stewards of these assets, is to maximize the value of each of them.

PCL produces lumber, plywood and medium density fiberboard (MDF) in our wood products manufacturing facilities in the Northwest. Plum Creek also operates a real estate development business which is a taxable REIT subsidiary. Plum Creek employs more than 1,200 people across 19 states.

Plum Creek Timber Company, Inc. (PCL) is a private timberland owner in the United States. As of December 31, 2011, Plum Creek owned 6.4 million acres of timberlands located in 19 states. The Company timberlands are diversified, not only geographically, but also by species mix and age distribution. Plum Creek manages its timberlands in two business segments: the Northern Resources Segment, consisting of timberlands in Maine, Michigan, Montana, New Hampshire, Oregon, Vermont, Washington, West Virginia and Wisconsin, and the Southern Resources Segment, consisting of timberlands in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Texas. In January 2012, the Company acquired approximately 4.7 million tons of standing timber in its Southern Resources segment. During the year ended December 31, 2011, the Company acquired 59,000 acres of timberlands primarily located in Alabama and Georgia and mineral reserves in Oregon.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.