Interfor to Acquire Rayonier's Wood Products Business
Transaction Expected to Close in the First Quarter Press Release: International Forest Products Limited – 50 minutes ago
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan 22, 2013) - INTERNATIONAL FOREST PRODUCTS LIMITED ("Interfor" or the "Company") (TSX:IFP.A) announced today that it has reached agreement to acquire the assets of Rayonier Inc.''s Wood Products Business for $80 million, inclusive of working capital. The transaction, which is subject to regulatory approval in the U.S., is scheduled to close in late February or early March.
Rayonier''s Wood Products Business, headquartered in Baxley, Georgia, consists of three sawmills located in Baxley, Swainsboro and Eatonton, Georgia, with a combined annual capacity of 360 million board feet of southern pine dimension lumber. As part of the transaction, Interfor has agreed to hire all of the Business'' current employees.
"The acquisition of Rayonier''s Wood Products Business is consistent with our strategy of adding capacity in attractive regional markets," said Duncan Davies, Interfor''s President & CEO.
The acquisition will bring Interfor''s annual capacity to more than 2 billion board feet and represents the Company''s first investment in the Southeast region of the U.S.
"We have been looking for an opportunity in the Southeast for some time and consider this is an ideal time to proceed," said Davies.
"We have a long-standing relationship with Rayonier in the Pacific Northwest and share similar business philosophies and principles. We believe the operations and people involved will fit seamlessly into Interfor''s operating system and will make a significant contribution to our future success."
The transaction, which will be financed from Interfor''s existing credit lines, is expected to be accretive from the outset.