B.C. lum­ber player adds to its Amer­i­can hold­ings

Can­for to ac­quire El­liott Sawmilling for $110M (U.S.)

Stockwatch Daily - - FRONT PAGE - Mr. Don Kayne re­ports

CAN­FOR CORP. has en­tered into an agree­ment to pur­chase El­liott Sawmilling Co. Inc., lo­cated in Estill, S.C., for a pur­chase price of $110-mil­lion (U.S.), which in­cludes nor­mal­ized work­ing cap­i­tal. The pur­chase price rep­re­sents a 4.3 times EBITDA mul­ti­ple based on El­liott’s twelve months trail­ing EBITDA. The trans­ac­tion will be com­pleted in two phases with 49% be­ing ac­quired on

clos­ing and 51% be­ing ac­quired one year later. El­liott has a pro­duc­tion ca­pac­ity in ex­cess of 210 mil­lion board feet and the sawmill con­sists of both large and small log lines. “We are thrilled to wel­come the em­ploy­ees of El­liott to the Can­for team. El­liott has an ex­cel­lent man­age­ment team and pro­duces high qual­ity prod­ucts that will align well with Can­for’s high-value prod­uct mix. Nash El­liott will con­tinue as the Gen­eral Man­ager af­ter the trans­ac­tion is com­pleted,” said Don Kayne, Pres­i­dent and Chief Ex­ec­u­tive Of­fi­cer of Can­for. “The pur­chase of El­liott will fur­ther ex­pand our pro­duc­tion ca­pac­ity to meet the grow­ing de­mand of our cus­tomers.”

The trans­ac­tion is ex­pected to close in the first half of 2019 and is sub­ject to con­fir­ma­tory due dili­gence, com­ple­tion of cer­tain trans­ac­tion doc­u­ments and other cus­tom­ary clos­ing con­di­tions.

Can­for is a lead­ing in­te­grated for­est prod­ucts com­pany based in Van­cou­ver, British Columbia (“BC”) with in­ter­ests in BC, Al­berta, North and South Carolina, Alabama, Ge­or­gia, Mis­sis­sippi

and Arkansas. Can­for pro­duces pri­mar­ily soft­wood lum­ber and also owns a 54.8% in­ter­est in Can­for Pulp Prod­ucts Inc., which is one of the largest pro­duc­ers of mar­ket north­ern bleached soft­wood kraft pulp and a lead­ing pro­ducer of high per­for­mance kraft pa­per. Can­for shares are traded on the Toronto Stock Ex­change un­der the sym­bol CFP.

We seek Safe Har­bor.

John Rus­sell Baird, Ryan Bar­ring­ton-Foote, Peter John Ger­ald Bent­ley, Glen David Clark, Don­ald Blair Kayne, Con­rad Al­fred Pinette, Man­fred Dal­las Henry Ross, James McNeill Sin­gle­ton, Ross Sid­dall Smith, Wil­liam Wade Stinson, Dianne Watts

(CFP) Shares: 126,494,348

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