Conifex Timber Inc. has entered into a definitive purchase agreement with certain subsidiaries of Canwel Building Materials Group Ltd. for the sale of Lignum Forest Products LLP. The consideration for the transaction is approximately $11.5 million, including approximately $10.5 million for working capital. The estimated working capital is subject to customary post-closing adjustments, as the company says in the press release received by Lesprom Network.
Ken Shields, Conifex's President and CEO, stated: "As we worked over the past several months capturing the synergies and integrating our two acquired US South mills into Conifex, it became apparent to us that Lignum’s strength in lumber marketing and distribution would be well positioned for the future under the guidance of a company with a good reputation and with a single focus on marketing forest products."
The transaction is expected to close on April 1, 2019, subject to customary closing conditions.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution.