The Interfor Corporation, a Canada-based lumber company, recently announced it has completed the acquisition of a sawmill in Monticello from The Price Companies, Inc.
“We are pleased to extend our U.S. South footprint in Arkansas and welcome our new employees to Interfor,” said Interfor President and CEO Duncan Davies.
The purchase price for the Monticello sawmill was $29.255 million, plus closing log and lumber inventories, and adjustments related to Price’s pre-closing capital expenditure payments for designated capital projects.
The Monticello sawmill produced approximately 75 million board feet of lumber over the last 12 months ending on March 31, 2015. The mill also has a number of operational and capital investment initiatives underway, including the construction of a continuous dry kiln that is expected to be completed in the third quarter of 2015. These initiatives should increase the mill’s near-term production to more than 100 million board feet per year and provide for drying capacity of approximately 150 million board feet per year.
As a result of this transaction, Interfor’s total annual lumber capacity will increase to 3.2 billion board feet, reinforcing its position as the fastest growing lumber company in the world. The Company’s lumber capacity in the US Southeast will total 1.3 billion board feet, representing more than 40 percent of the Company’s total pro forma capacity.
“This transaction is another illustration of our strategy to grow in regions with strong timber baskets and access to important lumber markets,” said Duncan Davies, Interfor’s president and chief executive officer. “The Monticello Sawmill fits these criteria, as well as having significant upside from initiatives that are underway and on the drawing board.”
The purchase price for the Monticello Sawmill will be $29.255 million, plus closing log and lumber inventories, and adjustments related to Price’s pre-closing capital expenditure payments for designated capital projects.
As of March 31, 2015, Interfor had a net debt to invested capital ratio of 34 percent. The company has additional liquidity under its bank credit facilities in excess of $170 million and will draw on those facilities to fund the transaction.
Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of more than 3.1 billion board feet and offers one of the most diverse lines of lumber products to customers around the world.