Photo: Colin Dacre

Weyerhaeuser Company and West Kelowna-based Gorman Group have reached an $120 million purchase agreement for a lumber mill in Princeton.

A family-owned wood products manufacturer based out of West Kelowna has reached an $120 million agreement to purchase Weyerhaeuser Company’s lumber mill operation in Princeton.

In a news release, Weyerhaeuser said the Gorman Group will be taking over the operation, which includes the manufacturing facility, all associated timber license assets in B.C. and the value of working capital.

Weyerhaeuser said it has a long-standing relationship with Gorman Group in Canada. Gorman Bros. Lumber is currently the Princeton mill’s largest customer.

Devin Stockfish, president and CEO of Weyerhaeuser, said the company is grateful to all its employees.

"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,” Stockfish said.

“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 Princeton lumber mill will be a natural fit for the company.

“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,” Arkle said.

“This really will be a case of the whole being stronger than the sum of its parts. We're looking forward to working together with First Nations, governments, communities and all our employees to make this a B.C. success story."

Ravi Parmar, B.C.'s minister of forests, welcomed the purchase. He said local and family-owned-and-operated forest companies are the “lifeblood” of the forest industry and “a cornerstone of our economy.”

“For too long, most major milling operations have been the realm of big industrial conglomerates. But today, the West-Kelowna-based business is reversing that trend,” Parmar said.

“Companies like Gorman Group believe in the future of forestry and they know that B.C. is a great place to invest in that future. Their investment is good for the forestry sector, good for workers and their families, good for the people of Princeton and good for B.C.”

The purchase is subject to customary closing conditions, including regulatory review. The sale is expected to be completed in the third quarter of 2025, and the forest tenures are expected to follow over the ensuing months.

Weyerhaeuser said it expects to recognize a gain on the sale and to incur a tax liability of about $15 million.

Its other operations won’t be affected by the sale and it will continue to operate the Princeton mill independently until the purchase closes.