Weyerhaeuser inked a deal to sell its lumber mill in Princeton, British Columbia, to the Gorman Group for 120 million Canadian dollars ($86.6 million) in cash.

The sale includes the manufacturing facility, in addition to associated timber-license assets and the value of working capital, which the lumber producer said Wednesday will be subject to customary purchase price adjustments at closing.

Seattle-based Weyerhaeuser said it expects to recognize a gain on the sale and incur a tax liability of approximately C$15 million. The company's other Canadian operations won't be affected by the deal, and it will continue to operate the Princeton mill independently of the Gorman Group until the transaction closes.

The sale of the mill is expected to close in the third quarter, with the forest tenures to follow over the ensuing months, the company said.

Gorman Group, a family-owned wood products manufacturer in British Columbia, said the operation will be a natural fit with 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," Chief Executive Nick Arkle said.

Source: investor.weyerhaeuser.com