B.C. lumber player adds to its American holdings
Canfor to acquire Elliott Sawmilling for $110M (U.S.)
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