VANCOUVER, BC - Canfor Corp. continues its acquisition spree of U.S. lumber firms with the purchase of Southern Lumber Co.'s operating assets.The $48.7 million purchase is expected to be completed by the end of first quarter 2015.
Founded in 1983 and based in Mississippi, Southern Lumber has a sawmill in Hermanville and specializes in the dimensioning of long, wide width southern yellow pine. The operation has a capacity of 90 million board feet.
"The Southern Lumber sawmill is a top quartile margin business located in an excellent fiber supply area that will provide us with additional higher value opportunities for our global markets," said Canfor President and CEO Don Kayne.
This latest acquisition extends Canfor's (TSX:CFP) reach even further into the southern United States. In August the Canadian lumber firm purchased the operating assets of Balfour Lumber Co. and Beadles Lumber Co. Included in that sale are two southern yellow pine sawmills in Georgia, with a combined capacity of 210 million board feet. Canfor also has operations in North and South Carolina and Alabama, in addition to Alberta and British Columbia.
Have something to say? Share your thoughts with us in the comments below.