West Fraser Completed Acquisition of Angelina Forest Products Lumber Mill

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. announced that it is nearing the completion of earlier announced acquisition of Angelina Forest Products lumber mill in Lufkin, Texas.

According to company press release, it has successfully satisfied all the closing conditions. Furthermore, it announced completion of the U.S. regulatory review. It must be noted that West Fraser had entered into an agreement to acquire the lumber mill in a deal worth approximately $300 million, subject to certain post-closing adjustments. The transaction value comprises $4 million of target working capital and around $24 million of supplemental tax attributes, which in turn is expected to deliver significant benefits to the company, in terms of direct cash flow.

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The acquired mill mainly produces southern yellow pine lumber products. The mill, which began operations in late-2019, is expected to attain full production capacity of over 300 million in the next three to four years.

The acquisition is regarded as another important step in West Fraser’s ongoing expansion of lumber operations in the U.S. It will be one of the low-cost operations in the company’s lumber mill portfolio.