CanWel acquires Lignum Forest Products
March 27, 2019 By CanWel Building Materials Group Ltd.
CanWel Building Materials Group Ltd. announced today that certain of its subsidiaries have entered into a definitive purchase agreement with Conifex Timber Inc. to acquire Lignum Forest Products LLP, a private partnership which operates a lumber marketing and distribution business.
Lignum is a well-established brand in the lumber and forestry distribution market in western Canada and the U.S. The acquisition further solidifies and complements CanWel’s North American distribution capabilities and reach with existing and new customers, through the addition of Lignum’s network of established inventory locations.
The purchase price of the acquisition will be satisfied from CanWel’s current balance sheet.
“Lignum is a well-respected brand in many of our markets and we are extremely pleased to be able to further solidify our North American lumber marketing and distribution capabilities with this acquisition,” said Amar Doman, Chairman and CEO of CanWel.
The acquisition is expected to be accretive to CanWel’s fiscal 2019 financial results. The company expects the acquisition to close on or around April 1, 2019.
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