VANCOUVER, BC- Conifex Timber Inc. has entered into a definitive purchase agreement to acquire Lignum Forest Products LLP for approximately $4 million. The transaction is expected to close by the end of January.
The news was announced January 6. Based in British Columbia, Lignum is a lumber distributor whose customers and products are complementary to those offered by Conifex, the company said.
"We believe that this transaction, including the retention of Lignum's experienced personnel, will further advance our marketing and logistics capability while concurrently reducing overall marketing costs. We expect to significantly extend our market reach, particularly in the improving U.S. market, through enhanced access to complementary customers and product lines," Conifex CEO Ken Shields said in a statement.
In related news, Conifex announced the appointment of Patrick Bell to the newly created role of executive vice president, Conifex Timber Inc. Among his previous experience, Bell served three terms in the BC Legislature and held high-profile positions with the Provincial Government, including Minister of Jobs, Tourism and Skills Training, Minister of Forests and Range, and Minister of Agriculture. Bell was appointed to the Conifex's Board of Directors in August 2013 and will continue to serve as a director.
Conifex and its subsidiaries are involved in timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of dimension lumber. Lumber products are sold in the United States, Chinese, Canadian and Japanese markets. The company is also in the process of building bioenergy facility at Mackenzie, BC.
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