VANCOUVER, Sept. 28, 2015 /PRNewswire/ - Canfor Corporation
(TSX:CFP) announces that it has entered into an agreement to
purchase Anthony Forest Products Company located in El Dorado, Arkansas ("AFP") for a purchase
price of $93.5 million US which
includes approximately $15 million US
of working capital.
AFP operates 6 facilities producing lumber, engineered wood and
wood chips with a combined capacity of 250 mmbf equivalent.
AFP owns a sawmill located in Urbana, Arkansas which produces premium Southern pine
lumber and has an operational capacity of 150 mmbf per year. It
also owns laminating facilities in El
Dorado, Arkansas and Washington, Georgia, which produce beams, columns and
other glulam products with an annual combined capacity of 75 mmbf,
and owns chip mills in Louisiana
and Texas with a total annual
capacity of 800,000 tons. AFP also owns a 50% interest in Anthony
EACOM Inc. a joint venture with EACOM Timber Corporation, located
in Sault Ste. Marie, Ontario which
manufactures I- joists, with an annual capacity of 54 million
lineal feet.
AFP's trailing 12 month EBITDA through August 2015 was approximately $16 million US, while EBITDA for its most recent
fiscal year ended April 30, 2015
approximated $19 million US.
Concurrent with the acquisition, the Company has priced a
US$100 million long term debt
financing with Prudential Capital Group. The senior unsecured
notes will carry an interest rate of 4.40% and will have an average
maturity in 2024. The financing will close on October 2, 2015.
"We are proud to add AFP to our family of Canfor Operations in
the US South," said Canfor Corporation President and CEO
Don Kayne, AFP has a reputation for
quality products and excellent customer service and with facilities
located in abundant and high quality fibre supply areas in
Arkansas, Louisiana and Georgia this partnership adds exceptional
value to our growing US South presence"
The transaction is expected to close in the fourth quarter 2015
and is subject to customary closing
conditions.
Canfor is a leading integrated forest products company based
in Vancouver, British Columbia
("BC") with interests in BC, Alberta, North and South Carolina, Alabama, Georgia and Mississippi. Canfor produces primarily
softwood lumber and also owns a 51% interest in Canfor Pulp
Products Inc., which is one of the largest producers of market
northern bleached softwood kraft pulp and a leading producer of
high performance kraft paper. Canfor shares are traded on the
Toronto Stock Exchange under the symbol CFP.
SOURCE Canfor Corporation