Sep 26, 2013. /Lesprom Network/. Plum Creek Timber Company, Inc. has entered into an agreement to acquire an interest in approximately 255 million tons of production at four quarries from Vulcan Materials Company (VMC) for $154 million. The quarries are located in the metro Atlanta, Ga., market and will continue to be operated by Vulcan. Beginning in October 2013, Plum Creek will receive royalty payments from the production and sale of the crushed stone from the quarries for approximately 25 years, as the company said in the press release received by Lesprom Network.

“This transaction is a unique opportunity for Plum Creek to increase our interest in construction material production in the attractive southeastern markets. These quarries are exceptionally well positioned for the recovery in the infrastructure, industrial and housing sectors in and around Atlanta,” said Rick Holley, CEO of Plum Creek. “We believe we are investing at the right time in the cycle, and the returns and long-term cash flow profile from these assets are compelling.”

“Plum Creek’s unique long term approach to construction materials has allowed us to build a portfolio of owned and acquired assets with excellent return characteristics,” continued Holley. “Over the past several months, institutional investors have expressed interest in investing in similarly positioned construction material assets. We are exploring the potential to pursue strategic partnerships that would allow us to leverage our experience in this area and earn management income, while limiting the total capital investment we make in this area of our business.”

Plum Creek is among the largest and most geographically diverse private landowners in the nation with approximately 6.3 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest.