Canfor to acquire South Carolina’s Elliott Sawmilling Co. for US$110M
By P&PC Staff
By P&PC Staff
November 12, 2018 – Canfor Corporation has announced it will purchase Elliott Sawmilling Co., Inc. located in Estill, South Carolina for a purchase price of US$110 million, which includes normalized working capital.
The purchase price represents a 4.3 times EBITDA multiple based on Elliott’s twelve months trailing EBITDA. The transaction will be completed in two phases with 49 per cent being acquired on closing and 51 per cent being acquired one year later.
Elliott has a production capacity in excess of 210 million board feet and the sawmill consists of both large and small log lines.
“We are thrilled to welcome the employees of Elliott to the Canfor team,” says Don Kayne, president and chief executive officer at Canfor. “Elliott has an excellent management team and produces high quality products that will align well with Canfor’s high-value product mix. Nash Elliott will continue as the General Manager after the transaction is completed. The purchase of Elliott will further expand our production capacity to meet the growing demand of our customers.”
The transaction is expected to close in the first half of 2019 and is subject to confirmatory due diligence, completion of certain transaction documents and other customary closing conditions.