The Sawmill Operations have a combined annual lumber capacity of 750 million board feet1 and are expected to produce 555 million board feet in 2014. As a result of this transaction, Interfor's total capacity will increase by 30% to 3.1 billion board feet, reinforcing its position as the fastest growing lumber company in the world. The Company's lumber capacity in the US Southeast and Pacific Northwest will total 1.2 billion board feet and 900 million board feet, respectively, representing 67% of the Company's total pro forma capacity.
"This transaction is another important milestone for Interfor," said Duncan Davies, Interfor's President and CEO. "The Simpson operations are a great strategic fit with our platforms in the US Southeast and Pacific Northwest, with significant operational and financial upside. Equally important is the deal structure that has two distinct components: the acquisition of three profitable sawmills at values that will create immediate accretion; and the acquisition of a fourth sawmill using a contingent payment structure that ties the ultimate purchase price of that sawmill to its future results."
Interfor is a growth-oriented lumber company with operations in Canada and the United States.