West Fraser Buys Big In U.S.

Wednesday, November 29, 2006 02:38 PM

This is the map West Fraser displays on its website showing the new acquisitions

West Fraser has announced it has entered into an agreement to buy 13 sawmills in the United States from International Paper. The price tag for the purchase is $325 million U.S. ($370 million Canadian) The refund of the countervailing duties ($260million U.S.) paid for most of the cost of the purchase.

The 13 mills which are located in North and South Carolina, Georgia, Florida, Alabama,Arkansas and Texas, employ about 2200 people and produce about 1.8 billion board feet.

All the mills produce lumber from southern yellow pine.

The deal is expected to close in the first quarter of 2007.

When the transaction is completed, West Fraser will become the secod larges lumber producer in North America with a combined Canadian - U.S. lumber production capacity of 6.2 billion board feet.

West Fraser already has sawmills in :

Terrace, Smithers, Houston, Burns Lake(2), Fraser Lake, Chetwynd, Quesnel (3), Williams Lake, 100 Mile House, Chasm, five other mills in Alberta and two mills in the Southern U.S. This is in addition to plywood, pulp and paper and mdf operations.

Previous Story - Next Story

Email |

Print |

Facebook |

Twitter |

Digg |

Del.icio.us

Posted on Wednesday, November 29, 2006 02:38 PM in News by 250 News

Return to Home

Comments

Posted by: owl on November 29 2006 6:18 PM

So, I wonder if anyone in the USA who imposed the countervailing duties thought that this might be the result of their action?

Posted by: REALIST on November 29 2006 6:23 PM

Yeah,but if you think about it the money that was returned to Canadians has just been sent back to the United States and will be used to provide Americans with employment. What do Canadians get? The wealthy who can afford to own stock in West Fraser get a blip in the value of their holdings. Thanks for nothing guys.

Posted by: skabowl1 on November 29 2006 6:52 PM

now hang on realist, if it was the Americans who were buying Canadian assests, would you be upset that the US were " buying out country out from under us?"

The more we have big companies involved on both sides of the border, the less likely it becomes for a repeat of the ongoing softwood saga.

Oh, and as for "The wealthy" I am far from same but I do have money put aside for my retirement and investments in stock make up a big part of that (though darn it, no West Fraser). I suspect Realist, if you do not own stocks yourself, you do through a pension plan of some sort. However, if you want to get on about inflated executive compensation...you and I just might agree!!! :-)

Posted by: Chester on November 29 2006 7:45 PM

Savy businessmen realize that to remain competitive, you either buy out your competition or you create your own. I commend West Fraser on stepping out and expanding their territory. Congratlations. Chester

Posted by: Runner46 on November 29 2006 11:40 PM

In the competitive business world, I want the best return on my investment as a shareholder. Judging from what WF has done to gain share with consolidation and diversification looks like another shrewd move by them, but time will tell.

As for the money going back to the USA not necessarily! It goes to the shareholders. The question is who are the shareholders
?

Posted by: owl on November 30 2006 1:37 AM

Actually the money goes to the company, who may turn around and buy a few pulp and/or paper mills in Canada, for all we know.