VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 22, 2013) -INTERNATIONAL FOREST PRODUCTS LIMITED ("Interfor" or the "Company") (TSX:IFP.A) announced today that it has reached agreement to acquire the assets of Rayonier Inc.'s Wood Products Business for $80 million, inclusive of working capital. The transaction, which is subject to regulatory approval in the U.S., is scheduled to close in late February or early March.
Rayonier's Wood Products Business, headquartered in Baxley, Georgia, consists of three sawmills located in Baxley, Swainsboro and Eatonton, Georgia, with a combined annual capacity of 360 million board feet of southern pine dimension lumber. As part of the transaction, Interfor has agreed to hire all of the Business' current employees.
"The acquisition of Rayonier's Wood Products Business is consistent with our strategy of adding capacity in attractive regional markets," said Duncan Davies, Interfor's President & CEO.
The acquisition will bring Interfor's annual capacity to more than 2 billion board feet and represents the Company's first investment in the Southeast region of the U.S.
"We have been looking for an opportunity in the Southeast for some time and consider this is an ideal time to proceed," said Davies.
"We have a long-standing relationship with Rayonier in the Pacific Northwest and share similar business philosophies and principles. We believe the operations and people involved will fit seamlessly into Interfor's operating system and will make a significant contribution to our future success."
The transaction, which will be financed from Interfor's existing credit lines, is expected to be accretive from the outset.
This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "will" and "is expected" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor's actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions, product selling prices, raw material and operating costs, changes in foreign-currency exchange rates, and other factors referenced herein and in Interfor's Annual Report and Management Information Circular available on www.sedar.com. The forward-looking information and statements contained in this report are based on Interfor's current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.
Interfor is a leading global supplier, with one of the most diverse lines of lumber products in the world. The Company has operations in British Columbia, Washington and Oregon, including two sawmills in the Coastal region of British Columbia, three in the B.C. Interior, two in Washington and two in Oregon. For more information about Interfor, visit our website at www.interfor.com.
There will be a conference call on Tuesday, January 22, 2013 at 9:00 AM (Pacific Time) hosted by INTERNATIONAL FOREST PRODUCTS LIMITED for the purpose of reviewing the details of this transaction. A presentation summarizing the transaction will be posted to the Investor Relations section of Interfor's website this morning.
The dial-in number is 1-866-323-8540. The conference call will also be recorded for those unable to join in for the live discussion, and will be available until February 5, 2013. The number to call for the recording is 1-866-245-6755, Passcode 931087.