Resolute Completes Acquisition of Three U.S. Sawmills
Resolute Forest Products Inc. (NYSE:RFP) (TSX:RFP.TO) today announced that, on February 1, 2020, it completed the previously disclosed acquisition of Conifex Timber Inc.'s three sawmills in the U.S. South, pursuant to the terms of the securities purchase agreement dated December 23, 2019. The total purchase price was $163 million, plus working capital, which is estimated at $13 million.
The three sawmills, with combined production capacity of 550 million board feet, are located in Cross City (Florida), and Glenwood and El Dorado (Arkansas). The facilities produce construction-grade dimensional lumber and decking products from locally-sourced southern yellow pine for distribution within the United States.
"We are pleased to welcome the new employees to Resolute," stated Yves Laflamme, president and chief executive officer. "The acquisition of the U.S. sawmills is the right move, at the right time, for Resolute; it will give us immediate scale in an attractive region, with quality assets in a rich fiber basket, close to growing end-markets."
This transaction diversifies the company's lumber production: when operating to capacity, almost 25% of Resolute's production will be in the U.S. South.
Cautionary Statements Regarding Forward-Looking Information
Statements in this press release that are not reported financial results or other historical information of Resolute Forest Products Inc. and its subsidiaries (collectively, the "company," "we," "our," or "us") are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements relating to the anticipated synergies and benefits of the acquisition. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "should," "would," "could," "will," "may," "expect," "believe," "anticipate," "attempt," "project," "intend" and other terms with similar meaning indicating possible future events or potential impact on the company's business or its shareholders.
The reader is cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance. These statements are based on management's current assumptions, beliefs and expectations, all of which involve a number of business risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include, among other things, the risks of not successfully integrating the acquired business or assets with the company's business or not realizing some or all of the anticipated synergies and benefits of the acquisition which could adversely affect the company's results of operations and cash flows. Additional information regarding factors that may cause actual results to differ materially from these forward-looking statements is available in the company's filings with the SEC, including the risks and uncertainties identified in Part I, Item 1A - Risk Factors of the company's Annual Report on Form 10-K for the year ended December 31, 2018.
All forward-looking statements in this press release are expressly qualified by the cautionary statements set out or referred to above and in the company's other filings with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities. The company disclaims any obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange.
Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Visit www.resolutefp.com for more information.
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SOURCE Resolute Forest Products Inc.