Interfor to acquire South Carolina sawmill from WestRock
February 10, 2021 By Interfor Corporation
Interfor Corporation announced today that it has reached an agreement with WestRock Company to acquire its sawmill located in Summerville, S.C., for cash consideration of US$59 million.
For the 12 months ended Dec. 31, 2020, the Summerville mill produced approximately 125 million board feet of lumber. A new permit was received in 2020 that allows for the production of up to approximately 200 million board feet of lumber per year and Interfor has identified a number of operational and capital investment initiatives to optimize and increase production going forward.
The Summerville mill is located 65 miles southwest of Interfor’s Georgetown, S.C. mill and 115 miles northeast of Interfor’s Meldrim, Ga., mill. This strategic positioning will allow for log sort optimization and procurement synergies across these three mills.
As part of the transaction, Interfor will also enter into a long-term chip and biomass supply agreement with WestRock’s Charleston, S.C. paper mill.
“This transaction is a logical tuck-in with our existing U.S. south platform and reiterates Interfor’s commitment to disciplined growth and investment in the U.S. south,” said Ian Fillinger, president and chief executive officer of Interfor. “We look forward to welcoming the Summerville employees to the Interfor team and partnering with them to operate and grow the business.”
As a result of this transaction, Interfor’s total annual lumber production capacity will increase to 3.2 billion board feet, of which 1.7 billion board feet or 55 per cent of the pro forma capacity will be located in the U.S. south.
The transaction is subject to customary conditions and is expected to close in the first quarter of 2021. The purchase price will be financed through available cash on hand.
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