Canfor Enters Into Agreement with Scotch & Gulf Lumber, LLC
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/31/13 -- Canfor
Corporation (TSX:CFP) announced today that it has entered into a
phased purchase agreement with Scotch & Gulf Lumber, LLC.
Headquartered in Mobile, Alabama, Scotch Gulf's primary operations
consist of three sawmills in Mobile, Fulton and Jackson, Alabama,
producing Southern Pine dimension lumber products. With origins
dating back 125 years, Scotch Gulf is one of the premier Southern
Yellow Pine producers in the southern U.S. Reflecting planned
near-term capital investments, the operation has a combined
production capacity of 440 million board feet.
The transaction involves the phased purchase by Canfor of Scotch Gulf
over a three-year period, at an aggregate purchase price, excluding
working capital, of $80 million. Canfor's initial 25% interest will
increase over the three year period 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. "Scotch
Gulf's values and approach to the market are closely aligned with
those of Canfor, and we are extremely pleased to have been given this
opportunity to work with the Scotch Gulf management team to integrate
that company's operating assets and extensive history with our
broader North American operations."
The transaction is subject to standard closing conditions and is
expected to close in the third quarter of 2013.
Forward Looking Statements
Certain statements in this press release constitute "forward-looking
statements" which involve known and unknown risks, uncertainties and
other factors that may cause actual results to be materially
different from any future results, performance or achievements
expressed or implied by such statements. Words such as "expects",
"anticipates", "projects", "intends", "plans", "will", "believes",
"seeks", "estimates", "should", "may", "could", and variations of
such words and similar expressions are intended to identify such
forward-looking statements. These statements are based on
management's current expectations and beliefs and actual events or
results may differ materially. There are many factors that could
cause such actual events or results expressed or implied by such
forward-looking statements to differ materially from any future
results expressed or implied by such statements. Forward-looking
statements are based on current expectations and Canfor and the
Purchaser assume no obligation to update such information to reflect
later events or developments, except as required by law.
Canfor is a leading integrated forest products company based in
Vancouver, British Columbia (BC) with operations in BC, Alberta,
Quebec and North and South Carolina. Canfor produces primarily
softwood lumber, and also produces bleached chemi-thermo-mechanical
pulp and specialized wood products. Canfor also owns a 50.2% interest
in Canfor Pulp Products Inc., which is one of the largest producers
of northern softwood kraft pulp in Canada and a leading producer of
high performance kraft paper. Canfor shares are traded on the Toronto
Stock Exchange under the symbol CFP.
Canfor Corporation - Media Contact
Vice President, Brand and External Relations
Canfor Corporation - Investor Contact
Vice President and Treasurer
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