Interfor Corp. IFP-T has signed a deal with an affiliate of the Kilmer Group to buy Chaleur Forest Products in New Brunswick for C$325-million.
Chaleur owns sawmill operations in Belledune and Bathurst, N.B., with a combined annual lumber production capacity of 350 million board feet.
The company also operates a woodlands management division based out of Miramichi, N.B., that manages about 30 per cent of the total Crown forest in the province.
In addition to the purchase price, which includes C$31-million of net working capital, Interfor will assume Chaleur’s countervailing and anti-dumping duty deposits at closing, for consideration equal to 55 per cent of the total deposits on an after-tax basis. Chaleur had paid US$82-million in countervailing and anti-dumping duty deposits as of Aug. 31.
Interfor chief executive Ian Fillinger says the acquisition is consistent with Interfor’s growth-focused strategy as a pure-play lumber producer and builds upon its recent expansion into Eastern Canada.
The acquisition is subject to Canadian and U.S. regulatory reviews and customary conditions. It is expected to close in the fourth quarter.