Canfor to acquire Scotch & Gulf Lumber in Alabama for $80M
Phased purchase of three sawmills will take place over three years.
VANCOUVER — Canfor Corp. has entered into a phased purchase agreement with Scotch & Gulf Lumber LLC valued at $80 million.
Canfor, a Vancouver-based forest products company, said Scotch Gulf’s primary operations produce southern pine dimension lumber products at three sawmills in Mobile, Fulton and Jackson, Ala.
The operation has a combined production capacity of 440 million board feet.
The phased purchase will occur over a three-year period. Canfor’s initial 25% interest will increase to 50% after 18 months and 100% at the end of the term.
“This agreement provides access to an exceptional fibre base, increases our Southern Pine production capacity to more than a billion board feet and will improve our ability to serve our valued US customers,” said Canfor president and CEO Don Kayne.
The transaction is to close in the third quarter.