Temple-Inland, the forest products company with divisions in real estate and financial services, has agreed to sell 1.55 million acres of timberland to an investment unit of Campbell Group, a Portland, Ore.-based timberland investment management company.
The deal is part of a “transformation plan” implemented by the company to increase cash flow in a time the company has been hurt by the downturn in the housing sector.
The deal also includes a 20-year fiber supply agreement for pulpwood and a 12-year fiber supply agreement for sawtimber with Campbell Group.
"The fiber supply agreements will enable us to capture a significant portion of the fiber grown on these lands,” explained Kenneth Jastrow, chairman and CEO of Temple-Inland. “We are pleased that many of our current forest employees will have the opportunity to continue managing these lands under new ownership.”
The company said earlier this year it would spin off its financial s