Jul 09, 2012. /Lesprom Network/. Federated Co-operatives Limited (FCL) has entered into an agreement to sell its Forest Products Division assets and operations at Canoe, B.C., to Gorman Bros. Lumber Ltd. of Westbank, B.C, Canada, as the company said in the press release received by Lesprom Network.
The sale is subject to a due diligence review by Gorman Bros. Lumber and various customary closing conditions. The transaction is expected to be completed later this summer.
The sale includes FCL’s plywood plant, sawmill and the log harvesting and forestry operations within the Okanagan Timber Supply Area surrounding Shuswap Lake.
FCL’s Forest Products Division and its logging contractors employ more than 300 people. The agreement provides that all employees will be offered employment by Gorman Bros. Lumber on substantially the same terms and conditions as their present employment.
FCL’s Forest Products Division has operated in Canoe since 1945. The manufacturing facilities have a capacity of approximately 150 million board feet of lumber and 150 million square feet of plywood annually. The sawmill has not operated since December 21, 2007, due to changing market conditions.
Gorman Bros. Lumber operates lumber production facilities in Westbank and Revelstoke, B.C. It has a long tradition of working with communities in its operating areas to ensure the best use of their resources. With the additional availability of the high quality fiber from the Canoe Forest Products Division, Gorman Bros. Lumber will be able to maximize the opportunities to enhance the wood supply to its existing operations while maintaining full production at the plywood plant in Canoe, B.C.