Canfor to acquire PinkWood’s I-joist business for $68 million

Rubber and Wood  |  2026-06-10 02:55:58   |   By

The purchase price represents a 5 times EBITDA multiple based on current production levels and earnings, including identified synergies.

SEATTLE (Scrap Monster): Canfor Corporation (TSX:CFP) announced Monday it will purchase PinkWood Ltd.’s I-joist business for $68.0 million, including working capital, according to a press release statement.

PinkWood, founded in 2009, operates an I-joist facility in Calgary, Alberta, producing engineered wood joists for residential, multi-family and commercial construction. The facility employs 120 people and has production capacity of 46 million linear feet.

The purchase price represents a 5 times EBITDA multiple based on current production levels and earnings, including identified synergies. Of the total consideration, $55.0 million is payable at closing, with the remaining $13.0 million payable over 5 years.The acquisition comes as Canfor, with a market capitalization of $1.14 billion, navigates challenging market conditions. According to InvestingPro analysis, the company currently appears undervalued relative to its Fair Value, despite operating with a significant debt burden and facing near-term profitability headwinds.

'PinkWood is a leading manufacturer of high-quality I-joists with a strong management team and stable returns,' said Susan Yurkovich, President and CEO of Canfor. 'Canfor’s acquisition of PinkWood complements our operations in Western Canada by enhancing product diversification and supporting the continued expansion of our value-added manufacturing capabilities.'Investors can access 5 additional ProTips and comprehensive financial metrics for Canfor on InvestingPro, including detailed profitability analysis and valuation insights.

PinkWood will retain its name and operate as a wholly owned subsidiary of Canfor. The company plans to finance the transaction with cash and available liquidity on hand.

The transaction is expected to close in the third quarter, subject to customary closing conditions.

Canfor is headquartered in Vancouver, British Columbia, and manufactures dimension and specialty lumber, engineered wood products, pulp and paper, wood pellets and green energy. The company operates more than 50 facilities across Canada, the United States and Europe, and holds a 77% stake in Vida AB, a Swedish sawmill company.

In other recent news, Canfor Corporation reported its Q1 2026 earnings, revealing mixed results. The company posted a revenue of 1.36 billion USD, surpassing the forecast of 1.26 billion USD, a positive surprise of 7.94%. However, Canfor’s earnings per share (EPS) fell short, reporting -0.792 USD compared to the expected -0.754 USD, resulting in a negative surprise of 5.04%. Meanwhile, Raymond James provided insights into the lumber market, noting that lumber stock valuations have hit multi-cycle lows. The firm highlighted supply reductions in Canada and the Eurozone as supportive factors for the market’s outlook. Raymond James suggested that North American lumber markets are nearing the end of their current downcycle. The investment bank’s mid-cycle analysis indicates potential returns based on current enterprise values. These developments are part of the recent landscape for Canfor Corporation and the broader lumber industry.

Courtesy: www.investing.com