- Interfor ( OTCPK:IFSPF ) ( TSX: IFP:CA ) will acquire 100% of Chaleur Forest Products for CAD325M, on a cash and debt free basis.
- IFSPF has reached an agreement with an affiliate of the Kilmer Group for the acquisition.
- The purchase price includes ~CAD31M of net working capital.
- The acquisition will be funded with a combination of cash on hand and its existing credit facilities.
- Chaleur owns two sawmill operations in Belledune and Bathurst, New Brunswick. The operations have a combined annual lumber production capacity of 350M board feet.
- Additionally, Chaleur also operates a woodlands management division based out of Miramichi. which manages ~30% of the total Crown forest in New Brunswick.
- Interfor's annual lumber production capacity is expected to increase to 5.1B board feet.
- The acquisition will be immediately accretive to the company's earnings.
- Interfor estimates Chaleur's mid-cycle EBITDA to be ~CAD50M per year pre-synergies.
- The acquisition, subject to Canadian and U.S. regulatory reviews and customary conditions, is expected to close in Q4.
- Source: Press Release
For further details see:
Interfor to acquire Chaleur Forest Products for CAD325M