TOKYO — Sumitomo Forestry Co., a prominent Japanese timber and construction firm, announced it would acquire 100 percent of the shares of Teal Jones Louisiana Holdings for $42 million. The acquisition will be facilitated through Sumitomo Forestry America, the company's wholly owned subsidiary.

Sumitomo Forestry said this move is aimed at strengthening its international housing and real estate ventures by securing a consistent lumber supply through sawmill operations in the southern United States.

TJLH's key asset is Teal Jones-Plain Dealing, a sawmill facility located in Plain Dealing, Louisiana. The operation has the capacity to produce 300 million board feet of lumber annually.

This acquisition process will be conducted under the Companies' Creditors Arrangement Act of Canada and Chapter 15 of the United States Bankruptcy Code, requiring approvals from the respective courts. Sumitomo Forestry anticipates finalizing the acquisition by the second quarter of its fiscal year 2025.

Teal Jones sold its remanufacturing plant in Salmon Arm, British Columbia to Stein Lumber a month ago.