Canfor buys another US sawmill
Oct. 1, 2014 - Canfor Corporation has purchased the operating assets of Southern Lumber Company, Inc. The acquisition includes a sawmill located in Hermanville, Mississippi which is a large log southern yellow pine dimension mill manufacturing predominately long, wide width lumber. The sawmill is in an area of exceptionally high quality fibre and is well suited for higher value product lines. After reflecting near term capital, the operation has a capacity of 90 million board feet.
The purchase price excluding working capital is $48.7 million (USD) and the completion of the transaction is expected at the end of the first quarter of 2015 and is subject to customary closing conditions.
"The Southern Lumber sawmill is a top quartile margin business located in an excellent fibre supply area that will provide us with additional higher value opportunities for our global markets," said Canfor Corporation President and CEO Don Kayne. "This, together with an excellent management team, will continue to ensure Canfor's ongoing commitment to our customers."