Interfor moves East with acquisition of EACOM Timber
B.C.-based forestry giant Interfor is moving to Eastern Canada with the announced acquisition of Ontario and Quebec-based lumber producer EACOM Timber.
Interfor announced today it has reached a $490-million purchase agreement with an affiliate of EACOM’s owners, Kelso & Company, for 100 per cent of the equity interests in EACOM. The acquisition boosts Interfor’s total lumber production capacity by 25 per cent.
EACOM’s Ontario and Quebec operations include seven sawmills with a combined annual spruce-pine-fir (SPF) lumber production capacity of 985 million board feet. EACOM also operates an I-Joist plant, a value-added remanufacturing plant, and manages 3.6 million cubic meters per year of certified forest.
Interfor president and CEO Ian Fillinger said in a news release the transaction makes Interfor a truly North American lumber producer with operations in all key forestry regions.
“This transformational growth secures a desirable SPF product mix to meet the growing demand of our customers, at a time when SPF fibre supply is under increasing pressure in other jurisdictions in North America and around the world,” Fillinger said.
“These are productive and well-managed mills, and we see meaningful opportunities to further enhance their performance by integrating them with our portfolio and applying our proven operating expertise.”
“We are excited for the opportunities that the acquisition brings, and we look forward to welcoming the talented EACOM team into our company and partnering with them to operate and grow the business in the years ahead,” Fillinger said.
With EACOM’s assets in the mix, Interfor’s total annual lumber production capacity will increase to 4.9 billion board feet, with 46 per cent from the U.S. South, 16 per cent in the U.S. Northwest, 20 per cent in eastern Canada, and 18 per cent in British Columbia.
Interfor says it will retain all of EACOM’s operating leadership and employees as well as its office in Montreal.
Kevin Edgson, president and CEO of EACOM, said the new ownership will mean the EACOM team will be a part of “one North America’s best lumber companies.
“Interfor’s operational excellence, financial strength, customer relationships and North American-wide portfolio will provide substantial opportunities to our people and our stakeholders. Our companies have shared values, including a commitment to safety and environmental responsibility and we are thrilled to be a part of Interfor’s continuing growth ambitions,” Edgson said.
Interfor’s purchase of EACOM is expected to close before next summer.