GreenFirst Forest Products Inc. has entered into a definitive agreement to sell its La Sarre and Béarn sawmills and its Abitibi and Témiscamingue forestry operations, as well as their related assets and business operations to Chantiers Chibougamau Ltée for approximately $90 million in cash payable at closing, including approximately $40 million for specific working capital items (subject to customary closing adjustments). Quebec-based employees are expected to continue to be employed by Chantiers Chibougamau post-closing.
GreenFirst expects to use the net proceeds from the sale to strengthen its balance sheet and continue investing in its Ontario operations. The sale of the Quebec assets is expected to close in Q1 2023.
The sale has been unanimously approved by GreenFirst’s Board of Directors and is subject to customary closing conditions, including receipt of applicable regulatory approvals and the Competition Act approval. The sale is not subject to any financing conditions. Under applicable corporate law, Chantiers Chibougamau has all approvals to conclude the transaction.
Chantiers Chibougamau Ltée is a long-standing Quebec-based and family-controlled forestry company.
GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production.
