Canfor Corporation on Thursday (12-16-21) announced it has entered into an agreement with Millar Western Forest Products Ltd. to acquire the Millar’s solid wood operations located in Alberta, Canada, and associated tenure for $420 million (CAD), which includes $56 million in working capital.
Millar Western’s solid wood operations will add 630 million board feet of production capacity and have access to a globally competitive, high-quality timber supply. The assets consist of three well-capitalized operations including two sawmill complexes in Whitecourt and Fox Creek and the high-value, specialty Spruceland Millworks facility in Acheson that is dedicated to serving strategic markets and generates higher, more stable returns.
Canfor anticipates financing this transaction with cash and liquidity on hand. The transaction is expected to close in the first quarter of 2022 and is subject to customary closing conditions including regulatory approvals.
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Canfor Increasing Production Capacity and Diversifying with Acquisition of Millar Western Assets