SEATTLE (Scrap Monster): GreenFirst Forest Products Inc. announced that it has closed the previously announced acquisition of forest and paper products assets belonging to various subsidiaries of Rayonier Advanced Materials Inc.
The aggregate purchase price stood at approximately US$234 million, comprising base amount of US$140 million and nearly US$87.5 million as the value of the inventory on-hand at the time of closing along with other adjustments. Out of this, approximately US$193 million was paid in cash, nearly US$34 million was paid in common shares in the capital of GreenFirst and C$7.9 million was paid through set-off Note.
The purchased assets consist of six lumber mills which are located in Chapleau, Cochrane, Hearst and Kapuskasing in Ontario and in Béarn and La Sarre in Québec and newsprint mill located in Kapuskasing, Ontario. The combined production capacity of all acquired lumber mills is estimated at around 755 MMFbm per year, whereas the newsprint mill has an annual production capacity of 205,000 MT per year.
The acquisition will make GreenFirst a major player in the entire Canadian forest products industry. The company has already announced plans to invest in optimizing the lumber mills so as to increase the lumber capacity significantly.