Interfor to expand in U.S.
July 12, 2004 By Pulp & Paper Canada
International Forest Products is set to absorb the sawmill assets of Crown Pacific Limited Partners and its affilia…
International Forest Products is set to absorb the sawmill assets of Crown Pacific Limited Partners and its affiliates in the U.S. Pacific Northwest. Although the purchase price is $57.3 million U.S., the working capital has been estimated at $16 million U.S.
The transaction is pending U.S. Bankruptcy Court approval and therefore, the possibility of placements of competing bids still exists. However, should the acquisition be completed, Interfor will see an increase in its total lumber capacity to almost 1.3 billion board feet per year while adding more than $120 million to its annual sales revenue.
Crown Pacific, along with the bulk of its affiliates have been under bankruptcy protection since June 2003.
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