Vancouver, British Columbia, Canada 30 September 2014 -- (Marketwired) -- Canfor Corporation (CFP.TO) is pleased to announce the purchase of the operating assets of Southern Lumber Company, Inc. The acquisition includes a sawmill located in Hermanville, Mississippi which is 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. After reflecting near term capital, the operation has a capacity of 90 million board feet.
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."
Forward Looking Statements
Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor assumes no obligation to update such information to reflect later events or developments, except as required by law.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia (BC) with operations in BC, Alberta, North and South Carolina and Alabama. Canfor produces primarily softwood lumber, and also produces bleached chemi-thermo-mechanical pulp and specialized wood products. Canfor also owns a 50.4% interest in Canfor Pulp Products Inc., which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP.