Vancouver’s Interfor Corp. (TSX:IFP) has completed the acquisition of an Arkansas sawmill from The Price Companies for US$29 million, the forestry company announced June 19.
The purchase further increases Interfor’s presence in the United States. In December, the company bought four sawmills from Simpson Lumber Company for US$94.7 million. Forty per cent of Interfor’s total production will now be located in the U.S. South.
“This transaction is another illustration of our strategy to grow in regions with strong timber baskets and access to important lumber markets,” Interfor president and CEO Duncan Davies said when the deal was first announced in May.
“The Monticello Sawmill fits these criteria, as well as having significant upside from initiatives that are underway and on the drawing board.”
The sawmill, located in Monticello, about 90 miles southeast of Little Rock, has an annual production of 75 million board feet of lumber and has construction underway to increase this output to 100 million.
Interfor said this move will increase its total lumber capacity to 3.2 billion board feet, making it the fastest-growing lumber company in the world.
When the company purchased four U.S. sawmills in December, Davies said the deal gave the company a hedge against external factors such as a renewed software lumber battle or currency changes.
As of press time, shares of Interfor were trading at $19.89, up slightly from $19.81 on June 18, before the acquisition was completed.
- With files from Gordon Hamilton
