Vancouver-based International Forest Products Ltd. (Interfor) (TSX:IFP.A) has announced an $80 million deal to acquire three sawmills in the southern U.S. from Baxley, Georgia-based Rayonier Inc.
According to Interfor, the acquisition of Rayonier’s wood products business will give Interfor an additional annual capacity of 360 million board feet of southern pine dimension lumber. As part of the deal, Interfor will hire all of the acquired business’ current employees.
“The acquisition of Rayonier’s wood products business is consistent with our strategy of adding capacity in attractive regional markets,” said Duncan Davies, Interfor’s president and CEO.
According to Interfor, the acquisition will raise Interfor’s annual capacity to more than 2 billion board feet. The deal is Interfor’s first investment in the Southeast region of the U.S.
Davies said Interfor and Rayonier have a long-standing relationship.
“We believe the operations and people involved will fit seamlessly into Interfor’s operating system and will make a significant contribution to our future success.”
The transaction is subject to regulatory approval in the U.S. and is scheduled to close in late February or early March.
