Canfor further expands into US with a new acquisition

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The trend of B.C. forestry companies buying up American sawmills continues. Canfor Corporation has announced on Tuesday the acquisition of Southern Lumber Company, Inc. which includes a sawmill located in Hermanville, Mississippi; a large log southern yellow pine dimension mill manufacturing predominately long, wide width lumber. The sawmill is in an area of exceptionally high quality fibre and is well suited for higher value product lines. The sawmill has a capacity of 90 million board feet (approximately 212 thousand cubic meters).

The purchase price excluding working capital is $48.7 million (USD) and the completion of the transaction is expected at the end of the first quarter of 2015 and is subject to customary closing conditions.

"The Southern Lumber sawmill is a top quartile margin business located in an excellent fibre supply area that will provide us with additional higher value opportunities for our global markets," said Canfor Corporation President and CEO Don Kayne. "This, together with an excellent management team, will continue to ensure Canfor's ongoing commitment to our customers."

This is not the first acquisition Canfor makes in the United States. Back in August 2014, Canfor bought two sawmills located in Thomasville and Moultrie, Georgia. The Balfour and Beadles mills also produce southern yellow pine lumber and their combined operations have a capacity of 210 million board feet (≈500,000 cubic meters). In 2013, Canfor acquired three other sawmills in Alabama.

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