International Forest Products Ltd. (TSX:IFP) has signed a deal to acquire Weyerhaeuser's Kamloops sawmill and its 700,000 cubic metres of public land timber.
Financial details of the acquisition were not disclosed, but the deal is expected to be completed in the fourth quarter subject to approval by Weyerhaeuser's board and other regulatory approvals.
Interfor plans to rebuild the plant to ensure its long-term viability and increase its presence in B.C.'s southern interior.
Acquiring the Kamloops mill will increase Interfor's annual production capacity by roughly 200 million board feet to a company total of 1.5 billion board feet.
Weyerhaeuser will continue to own sawmills in Princeton and Okanagan Falls and associated timber harvesting operations and other operations in the Lower Mainland.
Interfor's share price range during the past week: between $8.36 and $8.45; 52-week high: $9.84; 52-week low: $5.91.