U.S.-based forestry giant Weyerhaeuser has completed the sale of its lumber mill in the small town of Princeton, B.C., to the Gorman Group.

Seattle-based Weyerhaeuser said it received approximately US$60 million in cash proceeds from the divestment. Gorman’s purchase includes associated timber licence assets in B.C., which are part of a separate transaction that is slated to close in the coming months.

Weyerhaeuser said previously that it expected to receive about US$120 million in total for for all assets involved in the sale, including working capital, subject to customary closing adjustments.

Gorman Bros. Lumber, based in West Kelowna, B.C., had been the Princeton mill’s largest customer and has operated in Canada for more than 75 years.

Nick Arkle, Gorman’s CEO, previously said the acquisition strengthens the company’s business and reinforces its commitment to sustainable local employment.

Weyerhaeuser said its achieved a gain on the sale of the mill, incurring a tax liability of about US$11 million. The firm’s other Canadian operations will remain unaffected.

Pictured: Weyerhauser lumber mill in Princeton, B.C

Photo: Weyerhauser