VANCOUVER, BC - Interfor Corporation (TSX:IFP) says it will acquire Simpson Lumber Company sawmill operations in Meldrim, GA, Georgetown, SC, Longview, WA and Commencement Bay, WA. In September, Woodworking Network reported that Simpson Lumber was for sale.
Interfor will acquire the four sawmills from Simpson Lumber for $94.7 million. The move increases Interfor's total capacity by 30% and pushes its U.S. business from 57% to 67% of Interfor's total capacity.
The Simpson sawmill Operations are close to Interfor's sawmills in both the U.S. Southeast and Pacific Northwest. Combined the mills have annual lumber capacity of 750 million board feet and produced 555 million board feet in 2014. The Meldrim, Georgetown and Longview sawmills generated combined $16 million in revenue. The Commencement Bay, built in 2001 for $90 million, lost $3 million last year and is in the final stages of a $5 million capital project.
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