SPOKANE, Wash.--(BUSINESS WIRE)--Dec. 19, 2006--Potlatch
Corporation (NYSE:PCH), a real estate investment trust (REIT), today
announced its agreement to acquire approximately 76,000 acres of prime
forestland in Wisconsin for $64.5 million from Tomahawk Timberlands,
LLC, and Tomahawk Highlands, LLC. The transaction is expected to close
in early 2007.
The forestland, located in the north-central part of the state,
contains well-managed hardwoods and is made up of diverse age classes
with significant amounts of mature timber. The vast majority of the
land is concentrated in contiguous blocks less than five hours from
Chicago and Minneapolis.
"The forestland, which consists of high-value mature timber, has
been under excellent long-term forest management," said Vice President
of Resource Management Brent Stinnett. "The land complements our
existing holdings in Minnesota, has prime recreational values and will
help further establish our presence as a leading forestland holder in
the Lake States region."
Potlatch owns 310,000 acres in Minnesota, a sawmill in Bemidji,
and has been operating in the region for more than 40 years. The
company also owns a sawmill in Gwinn, Michigan.
"This acquisition is a perfect example of the execution of our
strategy," said President and Chief Executive Officer Michael J.
Covey. "Our objective is to maximize shareholder value through
identifying and acquiring land with strong timber values."
"We are focusing our growth in areas where we have experience and
know the lay of the land," added Covey. "Additionally, this purchase
should allow us to utilize a 1031 exchange and avoid built-in gains
taxes on any sales of like-kind properties that may occur."
"Through this acquisition, we will be able to better serve the
needs of our existing long-term customers in the region while opening
doors for new customers," added Stinnett. "And we very much look
forward to working with the existing customers who have historically
been supplied from these lands."
Potlatch is a REIT with 1.5 million acres of forestland in
Arkansas, Idaho, Minnesota and Oregon. Through its taxable REIT
subsidiary the company also operates 13 manufacturing facilities that
produce lumber and panel products and bleached pulp products,
including paperboard and tissue. Potlatch, a verified forest practices
leader, is committed to providing superior returns to stockholders
through long-term stewardship of our resources.
This press release contains certain forward-looking statements
within the meaning of the Private Litigation Reform Act of 1995 as
amended, including without limitation statements regarding 1031
exchanges, taxes and land values. These forward-looking statements are
based on current expectations, estimates, assumptions and projections
that are subject to change, and actual results may differ materially
from the forward-looking statements. Factors that could cause actual
results to differ materially include those risks and uncertainties
described from time to time in the company's public filings with the
Securities and Exchange Commission. The company does not undertake to
update any forward-looking statements.
CONTACT: Potlatch Corporation
Media: Mark J. Benson, 509-835-1513
Investors: Douglas D. Spedden, 509-835-1549
SOURCE: Potlatch Corporation