Interfor Corporation announced today, Thursday, May 27, 2021, that it has reached an agreement with Georgia-Pacific Wood Products LLC and GP Wood Products LLC (collectively Georgia-Pacific) to acquire four of its sawmill operations located in Bay Springs, Mississippi, Fayette Alabama, DeQuincy, Louisiana and Philomath, Oregon, (collectively the “Sawmill Operations”). The total purchase price of US $375 million, which includes working capital, will be funded entirely from cash on hand.
The Sawmill Operations are highly complementary to Interfor’s existing platforms in the US South and the US Northwest, and the acquisition will support accelerated growth and enhance the Company’s position to benefit from robust market conditions. The acquisition will be immediately accretive to Interfor’s earnings and is expected to provide attractive returns in both the near-term and over the long-term.
In a statement Ian Fillinger, Interfor Corporation’s President and Chief Executive Officer said, “This acquisition enhances Interfor’s growth-focused strategy as a pure-play lumber producer and provides significant economies of scale given the complementary geographic fit with our existing US operations. We’re excited to acquire these high-quality assets as part of our balanced approach to capital allocation to drive shareholder value.”
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