Interfor Corporation has reached an agreement with WestRock Company to acquire its sawmill located in Summerville, South Carolina for cash consideration of $59 million.
For the 12 months ended December 31, 2020, the Summerville Mill produced approximately 125 million board feet of lumber. A new permit was received in 2020 that allows for the production of up to approximately 200 million board feet of lumber per year and Interfor has identified a number of operational and capital investment initiatives to optimize and increase production going forward.
As part of the transaction, Interfor will also enter into a long-term chip and biomass supply agreement with WestRock’s Charleston, South Carolina paper mill.
As a result of this transaction, Interfor's total annual lumber production capacity will increase to 3.2 billion board feet, of which 1.7 billion board feet or 55% of the pro forma capacity will be located in the US South.
The transaction is subject to customary conditions and is expected to close in the 1Q 2021. The purchase price will be financed through available cash on hand.
Interfor is a growth-oriented forest products company with operations in Canada and the United States. The Company has annual production capacity of approximately 3.0 billion board feet and offers a diverse line of lumber products to customers around the world.
