Canadian lumber giant Interfor Corp said on Monday it will buy Chaleur Forest Products for C$325 million ($236.40 million), as it looks to boost presence in the New Brunswick province.<\/p>\n
The deal comes as lumber prices slide from soaring levels touched earlier this year, when Russia banned forestry product exports to the West \u2014 a retaliation against Western sanctions imposed over it for invading Ukraine.<\/p>\n
\u201cThis acquisition is consistent with Interfor\u2019s growth-focused strategy as a pure-play lumber producer and builds upon our recent expansion into Eastern Canada with further geographic diversity,\u201d said Ian Fillinger, President & Chief Executive Officer.<\/p>\n
Chaleur owns two modern and well-capitalized sawmill operations located in Belledune and Bathurst, New Brunswick, with a combined annual lumber production capacity of 350 million board feet. Chaleur also operates a woodlands management division based out of Miramichi that manages approximately 30% of the total Crown forest in New Brunswick. This division provides a secure source of fibre supply for the sawmill operations as well as a stable, long-term stream of cash flow from third-party log sales, licence management fees and silviculture activities.<\/p>\n
Interfor also said it expects its total annual lumber production capacity to increase to 5.1 billion board feet on a proforma basis, of which 44% will be in the U.S. South, 19% in Eastern Canada, 15% in the U.S. Northwest, 15% in British Columbia and 7% in Atlantic Canada.<\/p>","protected":false},"excerpt":{"rendered":"
Canadian lumber giant Interfor Corp said on Monday it will buy Chaleur Forest Products for C$325 million ($236.40 million), as it looks to boost presence in the New Brunswick province. The deal comes as lumber prices slide from soaring levels … Continue reading