Interfor Corporation announced today that it has reached an agreement with an affiliate of Kelso & Company to acquire 100% of the equity interests of EACOM Timber Corporation. …The purchase price is C$490 million, on a cash and debt free basis, which includes C$120 million of net working capital. In addition, Interfor will assume EACOM’s countervailing and anti-dumping duty deposits at closing, for consideration equal to 55% of the total deposits on an after-tax basis. …“This transaction makes Interfor a truly North American lumber producer, with operations in all the key fibre regions on the continent, further diversifying and de-risking our operating platform and enhancing our growth potential and opportunity set,” said Ian Fillinger, President & CEO.
The acquisition is consistent with Interfor’s growth-focused strategy as a pure-play lumber producer, increasing Interfor’s total lumber production capacity by 25%. On a pro-forma basis, Interfor’s total annual lumber production capacity will increase to 4.9 billion board feet, of which 46% will be in the US South, 16% in the US Northwest, 20% in eastern Canada and 18% in British Columbia. The business will operate under the Interfor banner, but Interfor will maintain all of EACOM’s key operating leadership and employees as well as its office in Montreal, Quebec to ensure continued regional support for the operations going forward. …From a product perspective, the acquisition adds lumber-adjacent offerings to Interfor’s portfolio of operations, with the addition of an I-Joist plant and a value-added remanufacturing plant.