Canfor acquiring Millar Western’s solid wood operations, tenure
Canfor has announced a purchase agreement with Millar Western Forest Products to acquire their solid wood operations and tenure in Alberta.
Canfor says the $420-million deal, including $56 million in working capital, will add 630 million board feet of lumber production capacity as well as access to a globally competitive, high-quality timber supply.
Edmonton-headquartered Millar Western operates sawmills in Whitecourt and Fox Creek, Alta., as well as Spruceland Millworks – a value-added specialty wood products facility in Acheson, Alta. The company’s woodlands division operates on a 440,667-hectare forest management agreement area.
Millar Western’s bleached chemi-thermo-mechanical pulp mill in Whitecourt, Alta., is not part of the acquisition.
The company said in a statement the deal will allow them to focus on growth opportunities in the pulp sector.
David Anderson, Millar Western’s president and CEO, said they are happy to see their dedicated employees on the path to a “strong future” with Canfor.
“This transaction, with a company that shares our commitment to working safely, supporting healthy communities, and conducting responsible stewardship of forest resources, will provide great opportunities to the outstanding people in our wood products operations,” Anderson said.
Canfor CEO Don Kayne said they look forward to welcoming Millar Western’s 550 employees to the Canfor team. “Millar Western has an excellent reputation for its highly skilled employees, strong commitment to safety, efficient operations and exceptional products,” Kayne said.
“We are excited to expand our Alberta operations to meet the growing demand of our customers for high-quality and sustainable wood products,” he said.
The deal is expected to close in the first quarter next year.
Millar Western celebrated its 100th anniversary as a company in 2019. Read CFI’s profile on the company here.