Conifex Timber (TSX:CFF) has entered into an agreement to acquire Lignum Forest Products for $4 million.
Lignum Forest Products markets and distributes lumber throughout North America. The company was founded by Jake Kerr, who was previously CEO of Lignum Limited, the forestry company his father founded in 1946.
The deal will give Conifex access to Lignum’s marketing and logistics skills.
"We expect to significantly extend our market reach, particularly in the improving U.S. market, through enhanced access to complementary customers and product lines," said Ken Sheild, CEO of Conifex.
A spokesperson for Lignum Forest Products said Kerr would retire when the deal closes at the beginning of February.
Conifex also announced that former Liberal MLA Pat Bell will become executive vice-president of Conifex Timber. Bell, who was forestry minister from 2008 to 2011, joined Conifex’s board in August 2013.
