Interfor Announced $490M Deal to Acquire EACOM Timber
Rubber and Wood | 2021-11-24 23:59:06
The acquisition, in line with the company’s growth-focused strategy as a pure-play lumber producer, is expected to boost its total lumber production by almost 25%.
By Paul Ploumis
SEATTLE (Scrap Monster): Interfor Corporation announced that it has reached an agreement with an affiliate of Kelso & Company to acquire 100% of the equity interests of EACOM Timber Corporation.
According to company press release, the purchase price of C$490 million, on a cash and debt-free basis, is inclusive of C$120 million of net working capital. Also, Interfor will assume EACOM’s countervailing and anti-dumping duty deposits at closing, for consideration equivalent to 55% of the total deposits on an after-tax basis.
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The acquisition, in line with the company’s growth-focused strategy as a pure-play lumber producer, is expected to boost its total lumber production by almost 25%. In addition, the acquisition will further build upon the company’s geographically diverse operations, further expanding itself in the Eastern Canada markets such as the Greater Toronto Area and throughout the Great Lakes region.
The acquisition will be immediately accretive to Interfor’s earnings and is likely to provide notable returns in both the near-term and over the long-term.
Ian Fillinger, President & Chief Executive Officer, Interfor stated that the transaction will make it a truly North American lumber producer, with operations in all the key fibre regions on the continent. Furthermore, he welcomed the talented EACOM team into the company, saying that it looks forward to operate and grow the business together in the years to come.