GreenFirst to acquire forest and paper products assets in Ontario and Québec
GreenFirst Forest Products Inc. entered a binding asset purchase agreement, pursuant to which a wholly-owned subsidiary of GreenFirst has agreed to acquire a portfolio of forest and paper product assets from Rayonier A.M. Canada G.P. and Rayonier A.M. Canada Industries Inc., each a subsidiary of Rayonier Advanced Materials Inc., which is arm’s length to GreenFirst.
The purchaser is acquiring the purchased assets for a purchase price of US$140 million plus the value of the inventory on-hand at the time of closing, reflecting an aggregate purchase price expected to be approximately US$214 million, which is payable approximately 85 per cent in cash and approximately 15 per cent in common shares in the capital of GreenFirst.
“This acquisition represents a significant advancement on our plans to focus GreenFirst on lumber and forestry investments,” saud Larry Swets, CEO, GreenFirst. “The acquisition significantly increases our footprint in Ontario and Québec, making us one of the largest companies in the North East focused in this space. We believe this acquisition to be accretive, providing significant value to our business.”