Interfor to acquire Eacom Timber

Interfor Corporation has reached an agreement with an affiliate of Kelso & Company to acquire 100% of the equity interests of Eacom Timber Corporation. The purchase price is CAD 490 million, on a cash and debt free basis, which includes CAD 120 million of net working capital.

The acquisition is consistent with Interfor’s growth-focused strategy as a pure-play lumber producer, increasing Interfor’s total lumber production capacity by 25%. On a pro-forma basis, Interfor’s total annual lumber production capacity will increase to 4.9 billion board feet, of which 46% will be in the US South, 16% in the US Northwest, 20% in eastern Canada and 18% in British Columbia.

The completion of the acquisition is subject to customary conditions and regulatory approvals for a transaction of this kind and is expected to close in the first half of 2022.