VANCOUVER, BC - Conifex Timber Inc. (TSX VENTURE:CFF) will acquire Lignum Forest Products LLP, a private partnership which operates a lumber marketing and distribution business, expanding the forest products firm's end-to-end supply chain.
Lignum operates its forestry and lumber distribution business in British Columbia, with customers and product distribution that are complementary to those of Conifex, the company said, providing Conifex "extensive market reach in the North American market through a network of established inventory locations." Conifex will pay C$4 million for Lignum Forest Products; the deal will close January 31.
"We expect to significantly extend our market reach, particularly in the improving U.S. market, through enhanced access to complementary customers and product lines," says Ken Shields, Conifex CEO. Conifex sells wood in the United States, Chinese, Canadian and Japanese markets. It is completing a bioenergy facility at Mackenzie, BC, which will bring it into the bioenergy market.
Hans Thur, Senior VP of Conifex Timber Inc., will have oversight of Lignum, while Patrick Bell as Executive Vice Presiden. Patrick Bell, a former provincial legislator and logging and trucking firm owner, was been appointed to the newly created role of Executive VP, Conifex Timber Inc. He will be based in Conifex's Prince George, BC office and focus primarily on the enhancement of the Conifex's regional operations including raw material supply, lumber manufacturing, capital expenditure programs, and human resources.
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