Canfor Corp. Signs Agreement to Acquire Elliott Sawmilling Co.

Upon closing, Canfor aims to acquire 49% on closing, whereas the remaining 51% will be acquired during the second phase, after a year.

SEATTLE (Scrap Monster): Canfor Corporation announced that it has reached an agreement to purchase Estill, South Carolina-based Elliott Sawmilling Co., for a price of $110 million. The transaction is subject to completion of certain transaction documents and other customary closing conditions. The company press release noted that the purchase deal is expected to close during the first half of 2019. Upon closing, Canfor aims to acquire 49% on closing, whereas the remaining 51% will be acquired during the second phase, after a year.

Don Kayne, President and Chief Executive Officer, Canfor noted that the purchase will result in further expansion of Canfor’s production capacity, thereby helping the company to offer better customer services. Elliot’s portfolio of high quality products aligns well with the company’s product mix, he said. Kayne welcomed Elliot’s employees to the Canfor team. Nash Elliot will continue to remain as the General Manager, he added.

Elliot’s high tech southern yellow pine mill, which consists of both large and small log lines, has a capacity to saw 200 million board feet per year. The company offers nearly 180 well-paid jobs in the region.

During early-November this year, Canfor had decided to curtail B.C. sawmill operations during the fourth quarter of 2018, mainly due to declining lumber prices, log supply constraints and higher log costs. As a result of this, the company’s B.C. production is expected to drop by 10% during the quarter.

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