West Fraser Completed Acquisition of Allendale OSB Mill
Rubber and Wood | 2021-12-07 06:56:22
West Fraser has already committed to make additional capital investment of around $70 million to upgrade and optimize the facility.
By Paul Ploumis
SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. announced that it has completed acquisition of the oriented strand board (OSB) mill near Allendale, South Carolina. Earlier in October this year, the company had reached an agreement with Georgia Pacific towards acquisition of the mill. The closing of the $280 million worth deal is subject to successful completion of U.S. regulatory reviews and satisfaction of customary conditions. The acquisition was financed entirely with cash in hand.
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West Fraser has already committed to make additional capital investment of around $70 million to upgrade and optimize the facility. The upgrade works are expected to last nearly nine months. It expects to ramp up the Allendale facility to full production over the next two years.
The acquisition of the facility will significantly boost the company’s OSB portfolio. The additional capacity will help West Fraser to meet rising customer demand, especially from southeastern U.S. end markets.
Last week, the company had announced completion of acquisition of Angelina Forest Products lumber mill in Lufkin, Texas, in a deal worth approximately $300 million. The mill primarily produces southern yellow pine lumber products.
