It’s Official, Canfor Buys Alabama-based Company
Prince George, BC – Canfor Corporation has completed a phased-in purchase agreement that will see the company acquire three southern pine-producing sawmills in Alabama.
The three-year, $80-million dollar deal sees Canfor initial 25-percent stake in Scotch & Gulf Lumber increase to 50-percent after 18-months, and 100-percent at the end of the term.
Canfor President and CEO, Don Kayne, says, "Scotch Gulf Lumber is a strong, high performing organization that will contribute to the overall strength of our Company."
The acquisition increases Canfor’s southern pine production capacity to more than a billion board feet. When the initial agreement was first announced at the end of May, Kayne said at that time, it would give Canfor access to an exceptional fibre base and would improve the company’s ability to serve the US market.
Comments
Seems in the long history of corporate acquisitions that for every buyer with a good reason to buy there’s usually a seller who had a better reason to sell. Distant pastures always look greener, but are they really?
Canfor presently owns 6 lumber operations, one in North Carolina and 5 in South Carolina, so this latest purchase adds to their strength in that area.
I hope their acquisitions turn out to be profitable for them. Bigness doesn’t always translate into better returns for the shareholders, or guarantee survival of the biggest.
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