American Industrial Partners, a private equity firm, entered into a definitive agreement to acquire the hardwoods and industrial products business unit from Weyerhaeuser Co.
The transaction is expected to close in August. The future business will operate as Northwest Hardwoods Inc., headquartered in Tacoma, Wash., with operations in the United States, Canada, China, Japan and Hong Kong.
Northwest Hardwoods, with approximately 1,000 employees, 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,” AIP’s Rick Hoffman said in a statement.
“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,” AIP’s Joel Stanwood said. “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.”
For information, visit www.aipartners.com.