BURNABY, British Columbia – Interfor Corp. continues to expand its U.S. lumber production capacity, this time through the acquisition of four sawmills from Georgia-Pacific Wood Products LLC.
G-P has agreed to sell its sawmill operations located in Bay Springs, Miss.; Fayette, Ala.; DeQuincy, La.; and Philomath, Ore., to Interfor for $375 million.
Combined, the four sawmill operations have an annual lumber production capacity of 720 million board feet. The Bay Springs, Fayette, and Philomath sawmills are currently operating on a full-shifting basis. The DeQuincy sawmill, which was idled in May 2020 during the COVID-19 pandemic, has an annual capacity of 200 million board feet. Interfor is currently evaluating its strategy and options for the site, including re-start plans.
Interfor said the total purchase price, which includes working capital, will be funded entirely from cash on hand. The transaction, subject to regulatory approval, is expected to be completed in the third quarter of this year.
Approval of the deal would boost Interfor’s annual North American lumber production capacity by more than 20% to 3.9 billion board feet at 21 sawmill operations. More than three-quarters of that total capacity is in the United States with the remainder in British Columbia.
Last month, Interfor announced it will invest $30 million to expand its sawmill operations in Perry, Ga.
“This acquisition enhances Interfor’s growth-focused strategy as a pure-play lumber producer, and provides significant economies of scale given the complementary geographic fit with our existing U.S. operations” said Ian Fillinger, president and CEO of Interfor. “We’re excited to acquire these high-quality assets as part of our balanced approach to capital allocation to drive shareholder value.”
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