Conifex Signs Definitive Agreement on Sale of Fort St. James Sawmill

SEATTLE (Scrap Monster):  Conifex Timber Inc. announced that it has reached a definitive purchase agreement with Portland-headquartered Hampton Lumber towards sale of its Fort St. James sawmill. The purchase price is close to $39 million in addition to the market value of finished lumber and log inventory at the time of closing the transaction.

According to press release issued by Conifex, it does not plan to resume normal production activities at the mill site, prior to closing of the transaction, mainly on account of uncertain market conditions. The closing of the transaction is however subject to certain regulatory approvals and other customary closing conditions. The proceeds of the transaction will be primarily used to retire debts and boost liquidity, which in turn will help in performance optimization at its other locations.

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Ken Shields, Conifex's Chair and CEO thanked all its employees, contractors and other stakeholders for their hard work and contribution to the site over the past decade. The decision to sell the mill was extremely a difficult one to take, Shields said. However, the company is encouraged by Hampton’s plan to rebuild the site.

Meantime, Steve Zika, CEO, Hampton Lumber commented that the company intends to build a new sawmill in Fort St. James and that it looks forward to building long-standing relationships with local First Nations and other community partners. The long-term outlook for lumber industry in Canada looks promising, Zika added.