RoyOMartin to Sell Louisiana Sawmill, Timberland, and Timber-cutting Rights Alexandria, Louisiana, February 26, 2008:
RoyOMartin announced today the pending sale of its LeMoyen, Louisiana, hardwood sawmill, approximately 10,000 acres of hardwood timberland, certain recreational rights, and 20-year timber-cutting rights on an additional 140,000 acres of hardwood timberland located in the south-Louisiana region to an investment fund controlled by The Forestland Group, LLC (TFG) of Chapel Hill, North Carolina. RoyOMartin will retain ownership of the surface and mineral rights and will monitor timber harvesting to ensure continued compliance with approved harvesting methods of the Forest Stewardship Council (FSC).
TFG currently manages almost 3 million acres of timberlands in 20 states, Canada, and Central America for institutional investors. A fund controlled by TFG also owns Anderson-Tully Company, including its hardwood sawmill complex in Vicksburg, Mississippi. TFG emphasizes naturally regenerated hardwood and pine forests and the strategic production of valuable saw timber, which is complementary to RoyOMartin’s historical forest management practices. TFG is a Certified Resource Manager under the FSC.
With the transaction, TFG is acquiring RoyOMartin’s sawmill in LeMoyen, Louisiana. The sawmill produces some 50 MMBF per year of hardwood and pine lumber, serving both the domestic and international markets. The sawmill currently employs approximately 200 employees, which TFG plans to retain, including site management.
TFG brings enhanced market possibilities for the fine hardwoods currently produced at the LeMoyen sawmill. According to E. Scott Poole, COO of RoyOMartin, “These expanded market opportunities will only serve to strengthen the sawmill’s presence globally, which aids in the mill’s capacity to sustain its longer-term production operation, preserving the livelihood of so many wonderful employees.” TFG is one of many new large organizations seeing the numerous investment opportunities in Louisiana.
RoyOMartin is very proud to be associated with The Forestland Group and is committed to making this relationship one that not only builds upon our collective past, but also positions each organization for an even greater future. We wish TFG great success as they embark upon this grand opportunity with one of the finest sawmills in North America, operated by a group of knowledgeable and committed employees.