VANCOUVER – International Forest Products Ltd. (TSX:IFP.A) will acquire a Georgia lumber business in a US$180-million deal that will significantly grow its presence in the U.S. Southeast.
The Vancouver-based company says the acquisition of the Tolleson lumber business of Perry, Ga., will increase Interfor’s overall annual lumber capacity by 20 per cent.
It also says the purchase of Tolleson from Ilim Timber Continental SA will make Interfor one of the top five lumber producers in North America, with 35 per cent of its total capacity in the U.S. Southeast.
“This transaction represents a significant step for Interfor,” Duncan Davies, Interfor’s President and CEO, said in a Sunday announcement.
“The Tolleson mills are a great fit with our operations in the U.S. Southeast and provide a larger footprint on which to build our presence in the region.”
Interfor will pay US$129.9 million cash plus 3.68 million of its class A shares to acquire Tolleson, which has two saw mills and a manufacturing plant.
They are about 120 kilometres from Interfor’s current operations in Georgia and the company foresees more than US$5 million of annual cost-savings through the deal.