Resolute Forest Products Inc. has announced that it has completed the acquisition of Conifex Timber Inc.’s three sawmills in the U.S. South.
“We are pleased to welcome the new employees to Resolute,” stated Yves Laflamme, president and chief executive officer. “The acquisition of the U.S. sawmills is the right move, at the right time, for Resolute; it will give us immediate scale in an attractive region, with quality assets in a rich fiber basket, close to growing end-markets.”
The total purchase price was $163 million, plus working capital, which is estimated at $13 million.
The three sawmills, with combined production capacity of 550 million board feet, are located in Cross City (Florida), and Glenwood and El Dorado (Arkansas). The facilities produce construction-grade dimensional lumber and decking products from locally-sourced southern yellow pine for distribution within the United States.
This transaction diversifies the company’s lumber production: when operating to capacity, almost 25 per cent of Resolute’s production will be in the U.S. South.
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