{"id":81922,"date":"2022-03-02T11:28:19","date_gmt":"2022-03-02T11:28:19","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/b-c-s-biggest-forestry-companies-target-u-s-lumber-companies\/"},"modified":"2025-09-18T17:23:19","modified_gmt":"2025-09-18T17:23:19","slug":"b-c-s-biggest-forestry-companies-target-u-s-lumber-companies","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/b-c-s-biggest-forestry-companies-target-u-s-lumber-companies\/","title":{"rendered":"B.C.\u2019s biggest forestry companies target U.S. lumber companies"},"content":{"rendered":"<div class=\"article-content\">\n<p class=\"c-article-body__text ep-1 font-pratt\">A handful of American lumber barons\u2019 heirs stand to cash in for well into the near future, as investment banks anticipate Canada\u2019s biggest forest products companies will expand south of the border by targeting privately owned timberlands and sawmills.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">The North American lumber market is booming, in large part due to the increase in home construction. Canada\u2019s largest companies, including B.C.-based West Fraser Timber Company Ltd., Canfor Corp and Interfor Corp, are on the hunt and with cash.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">Last year set new records for lumber company acquisitions compared to the previous five years combined, with acquisitions in North America for $2.2 billion last year, according to a recent report by RBC Capital Markets analyst Paul Quinn.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">According to investment bankers, the fast pace of deal-making will continue, partly because the latest round of M&amp;A has paid off for buyers. In a report, Scotia Capital analyst Benot Lapred said: \u201cAll acquisitions closed in the past 12 to 18 months have so far enjoyed additional cash flow, making the economics of those transactions very attractive.\u201d<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">After several deals over the past year, analysts say clear deals involving publicly traded companies have faded away and buyers are turning their attention to privately owned lumber businesses in the southern and northwestern United States. are turning, some of which are in their seventh generation. family ownership.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">According to industry experts, BC forest products companies are targeting US expansion after the provincial government reduced timber harvesting and transferred forest ownership to First Nations. Mr Quinn said: \u201cGeographical diversification is top of mind, as changing political and natural environments can negatively affect operations.\u201d<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">A handful of private U.S. lumber companies will command a billion-dollar-plus price tag, including Idaho Forest Group LLC. Founded in 1934, Coeur d\u2019Alene-based Idaho Forest is now controlled by two families and produces about half the wood each year as Vancouver-based Interfor, a TSX-listed company with a $2.4-billion market capitalization. If the owners of Idaho One decided to sell, Mr. Quinn said West Fraser, Interfour and Canfor would be among the potential buyers.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">However, analysts predict that the next wave of acquisitions will be focused on smaller lumber businesses that qualify as relatively low-risk, tuck-in acquisitions for larger Canadian companies.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">For example, West Fraser owns facilities near South Carolina-based Colum\u2019s Lumber Products LLC, currently operated by the fourth generation of the founding family, and Georgia-based Langdale Forest Products Company, controlled by a clan since 1894. Mr. Quinn said the Vancouver-based company is a natural buyer of any US business.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">According to Mr. Quinn, Interfor or Canfor, Jordan Lumber &amp; Supply, Inc. K, a North Carolina business that has been in the same family since 1939. He said Canfors would also be interested in buying Rex Lumber Corp., which has four sawmills in Mississippi, Alabama and Florida and its roots date back to 1926.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">Why would anyone sell the founding family? Recent deals show that passing a business from one generation to the next in the often-volatile lumber sector is not always a way to build family wealth.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">Over the past 15 years, New York-based Blue Wolf Capital Partners LLC has bought and sold several forest product companies. The private equity fund manager recently published a case study on an acquisition, Florida-based Suwannee Lumber Company.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">Suwani was established in 1954. As of 2013, when Blue Wolf was calling, several generations of three families shared ownership; There was no control of any one group. Most of the shareholders did not work in the company. Crucially, none of the owners were earning dividends; All profits went back to the company to expand operations. Like many long-established forest produce companies, Suwani also faced significant environmental cleanup costs.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">Presented with the prospect of injecting new capital into a lumber business that was not paying them a cent, most of the family members opted to sell. Blue Wolf treated and modernized the facilities, then acquired another sawmill in Arkansas. In 2018, Blue Wolf sold the business to Vancouver-based Conifex Timber Inc. for US$200 million, which later sold it to Montreal-based Resolute Forest Products Inc.<\/p>\n<p class=\"c-article-body__text ep-1 font-pratt\">The same dynamics that led to the sale of Suvani \u2014 spreading family ownership, declining dividend income and significant future costs \u2014 would prompt more descendants of the lumber baron to cash in when Canadian buyers called.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>A handful of American lumber barons\u2019 heirs stand to cash in for well into the near future, as investment banks anticipate Canada\u2019s biggest forest products companies will expand south of the border by targeting privately owned timberlands and sawmills. The &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/b-c-s-biggest-forestry-companies-target-u-s-lumber-companies\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59390,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,4716,4715,4714],"tags":[3313,3306,4576,3252],"class_list":["post-81922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-canada","tag-lumber","tag-lumber-companies","tag-us"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>B.C.\u2019s biggest forestry companies target U.S. lumber companies - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/b-c-s-biggest-forestry-companies-target-u-s-lumber-companies\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"B.C.\u2019s biggest forestry companies target U.S. lumber companies - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"A handful of American lumber barons\u2019 heirs stand to cash in for well into the near future, as investment banks anticipate Canada\u2019s biggest forest products companies will expand south of the border by targeting privately owned timberlands and sawmills. 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