SEATTLE (Scrap Monster): West Fraser Timber Co. Ltd. announced that it has entered into an agreement with Angelina Forest Products towards acquisition of its Lufkin, Texas lumber mill for a sum of approximately $300 million, including $4 million of target working capital and $24 million in supplemental tax attributes. The company plans to finance the acquisition with cash on hand.
Angelina Forest Products had begun construction of the lumber facility in 2018. It began operations in late-2019 and is expected to achieve full production over the next three to four years. The estimated annual production capacity of the mill is approximately 305 million board feet of southern yellow pine (SYP) lumber products.
The acquisition marks another important step in West Fraser’s continued expansion of U.S. lumber operations. The new mill will integrate with and support its existing East Texas lumber and OSB operations. It will help the company to better serve its growing customer base in Texas and the Southern U.S.
The transaction is subject to certain post-closing adjustments, completion of regulatory approvals and satisfaction of customary closing conditions. Further update and details about the transaction will be provided along with third quarter results announcement on 28th October, 2021.