Interfor acquires Tolleson mills in Georgia for $180M
Acquisition of the Tolleson operations provides a greater foothold in US Sourtheast.
VANCOUVER — International Forest Products Ltd. has acquired the Tolleson Ilim Lumber Co. in Perry, Ga. from Ilim Timber Continental, S.A. for $180 million.
Vancouver-based Interfor said the Tolleson operations include two sawmills in Perry and Preston, Ga. with a combined annual lumber capacity of more than 400 million board feet, plus a remanufacturing facility in Perry.
The Tolleson mills, recently ranked as the two lowest-cost mills in a survey of US southern pine sawmills, had sales of US$134 million in 2013.
Interfor said the mills, located within 75 miles of Interfor’s operations at Thomaston and Eatonton, Ga., will create an enhanced platform for the company in the US Southeast.
The acquisition will be good for more than US$5 million in annual synergies through a what Interfor describes as a combination of process optimization, enhancements in logistics and transportation and best-in-class business practices.
The Tolleson mill in Perry will get an upgrade of its kilns and an increase in operating hours to raise annualized lumber production by 50 million board feet, beginning in 2015.
Interfor is looking at an increase in annual lumber production capacity of almost 20% to 2.6 billion board feet, placing it in the top five lumber companies in North America.
The company’s lumber platform in the US Southeast will total more than 900 million board feet, representing approximately 35% of the company’s total capacity.