EACOM Timber sold for $490M to Interfor
Interfor Corp., operated out of Burnaby, B.C., and with operations across North America, announced Tuesday it has acquired ownership of EACOM Timber Corp. for $490 million.
EACOM has operations in several northern Ontario communities, including Timmins, Elk Lake, Gogama, Sault Ste. Marie and Nairn Centre.
“This transaction will allow our team to write its next chapter as part of one of North America’s best lumber companies,” EACOM’s president and CEO Kevin Edgson said in a news release.
“Interfor’s operational excellence, financial strength, customer relationships and North American-wide portfolio will provide substantial opportunities to our people and our stakeholders. Our companies have shared values, including a commitment to safety and environmental responsibility and we are thrilled to be a part of Interfor’s continuing growth ambitions.”
The sale increases Interfor's total lumber production capacity by 25 per cent -- nearly five billion board feet across 28 sawmills, with multiple secondary manufacturing facilities and 4,600 employees.
"Interfor is committed to growing EACOM and the region where it operates over the long term and to continually invest in the competitiveness of the EACOM operations to the benefit of all stakeholders," the release said.
In its news release, Interfor said the business will operate under the Interfor banner, but Interfor will maintain all of EACOM’s key operating leadership and employees as well as its office in Montreal.
“This transaction makes Interfor a truly North American lumber producer, with operations in all the key fibre regions on the continent, further diversifying and de-risking our operating platform and enhancing our growth potential and opportunity set,” Ian Fillinger, Interfor president CEO, said in the release.
Fillinger said the sale comes at a time when demand is growing and SPF fibre supply is under increasing pressure.
“These are productive and well-managed mills, and we see meaningful opportunities to further enhance their performance by integrating them with our portfolio and applying our proven operating expertise," he said.
"We are excited for the opportunities that the acquisition brings."
See the full news release here.