U.S.-based forestry giant Weyerhaeuser has agreed to sell its lumber mill in the small town of Princeton, B.C., to the Gorman Group for approximately $120 million in cash.

The proposed agreement includes the manufacturing facility, associated timber licence assets in B.C., and working capital, subject to customary closing adjustments.

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

“We are grateful to all the dedicated employees who contributed to the success of our Princeton operations over the years,” said Devin Stockfish, president and CEO of Weyerhaeuser. “The community has always been incredibly welcoming and supportive of our mill and people, and it was important for us to sell to a local buyer with deep roots in the region.

“Gorman has been a great customer and strategic partner, and we believe this will be a seamless transition that will position the mill for future success in a challenging operating environment — providing long-term certainty for the mill and the broader community.”

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

“Weyerhaeuser’s Princeton operation will be a natural fit with the Gorman Group,” said Arkle. “We’ve had a strong connection to the Princeton operation for many years, and we know firsthand the skill, commitment and quality that define its team. We’re delighted to welcome this mill and its people into the Gorman Group family, as this move will strengthen our company, support the sustainability of good jobs in our communities and help us continue developing the world-class wood products we’re known for.”

The deal remains subject to regulatory review and other closing conditions, with the mill sale expected to finalize in the third quarter of 2025. The transfer of forest tenures will follow over the ensuing months.

Weyerhaeuser anticipates a gain on the sale and a tax liability of about C$15 million. Its other Canadian operations will remain unaffected, and the Princeton mill will continue operating independently until the transaction closes.

Pictured: Weyerhauser lumber mill in Princeton, B.C

Photo: Weyerhauser

May 28 in Toronto | Industry experts, investment and market leaders, and dealmakers are convening at Connect Canada to discuss how global capital is adapting to uncertainty. Register to attend! www.ConnectCanada2025.com | May 28, 2025 | Malaparte, Toronto