West Fraser Timber Refutes Rumours About Acquisition

SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. issued a statement in connection with the rumours in market that the company is going to be acquired by private equity firm CVC Capital and wood panel manufacturer Kronospan.

The statement noted that the company is aware of the recent market and media speculation. Though it has previously met with Kronospan and CVC Capital Partners, the company is yet to receive any proposal for acquisition from them. Also, there are no ongoing discussions with regards to the terms of any transaction. The company is currently focused on executing its business strategy and create value for its shareholders, it added.

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Meantime, media reports suggest that CVC Capital and Kronospan have already submitted a joint expression of interest to acquire the assets of the Canadian lumber major. The parties have already informed the management of West Fraser regarding their willingness to proceed with acquisition negotiations.

CVC Capital decline to comment, whereas Kronospan did not respond to requests for comment, said Reuters.

It must be noted that West Fraser has been witnessing increased demand for its products including lumber and plywood. However, it has been facing several challenges too. Of late, the company has been hit by transport and logistics problems in Western Canada, due to which it was not able to fulfil customer orders.