Canfor purchases Anthony Forest Products
September 30, 2015 - Canfor Corporation announced that it has entered into an agreement to purchase Anthony Forest Products Company, located in El Dorado, Arkansas, for a purchase price of $93.5 million U.S., which includes approximately $15 million U.S. of working capital.
By Andrew Macklin
AFP operates six facilities producing lumber, engineered wood and wood chips with a combined capacity of 250 mmbf equivalent. AFP owns a sawmill located in Urbana, Arkansas, which produces premium Southern pine lumber and has an operational capacity of 150 mmbf per year. It also owns laminating facilities in El Dorado, Arkansas and Washington, Georgia, which produce beams, columns and other glulam products with an annual combined capacity of 75 mmbf, and owns chip mills in Louisiana and Texas with a total annual capacity of 800,000 tons. AFP also owns a 50% interest in Anthony EACOM Inc. a joint venture with EACOM Timber Corporation, located in Sault Ste. Marie, Ont., which manufactures I-joists, with an annual capacity of 54 million lineal feet.
Concurrent with the acquisition, the Company has priced a $100 million USD long-term debt financing with Prudential Capital Group. The senior unsecured notes will carry an interest rate of 4.40 per cent and will have an average maturity in 2024. The financing will close on October 2, 2015.
“We are proud to add AFP to our family of Canfor Operations in the US South,” said Canfor Corporation president and CEO Don Kayne. “AFP has a reputation for quality products and excellent customer service and with facilities located in abundant and high quality fibre supply areas in Arkansas, Louisiana and Georgia this partnership adds exceptional value to our growing US South presence.”
The transaction is expected to close in the fourth quarter 2015 and is subject to customary closing conditions.