Canfor to acquire S.C.-based Elliott Sawmilling for US$110M

Ellen Cools
November 12, 2018
By
Nov. 12, 2018 – B.C.-based Canfor Corp. has agreed to buy Elliott Sawmilling Co., located in Estill, S.C., for US$110 million, which includes normalized working capital.

Elliott produces over 210 million board feet and features both large and small-log lines.

“We are thrilled to welcome the employees of Elliott to the Canfor team. Elliott has an excellent management team and produces high quality products that will align well with Canfor’s high-value product mix. Nash Elliott will continue as the general manager after the transaction is completed,” said Don Kayne, president and CEO, Canfor. “The purchase of Elliott will further expand our production capacity to meet the growing demand of our customers.”

The purchase price is 4.3 times EBITDA based on Elliott’s twelve months trailing EBITDA. The transaction is expected to close in the first half of 2019, subject to customary closing conditions.

Upon closing, Canfor will own 49 per cent of the sawmill; the remaining 51 per cent will be acquired one year later.

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