BURNABY, British Columbia, February 9, 2021 (GLOBE NEWSWIRE) – INTERFOR CORPORATION (“Interfor” or the “Company”) (TSX: IFP) announced today that it has reached an agreement with the WestRock Company (“WestRock”) (NYSE: WRK) to acquire its sawmill located in Summerville, South Carolina (the ” Summerville Mill ”) for a cash value of $ 59 million.
In the 12 months ended December 31, 2020, the Summerville factory produced approximately 125 million wooden board feet. A new license was received in 2020 that allows the production of up to approximately 200 million square feet of sawn wood per year and Interfor has identified a series of operational and capital investment initiatives to optimize and increase production going forward.
The Summerville plant is located 65 miles southwest of the Interfor plant in Georgetown, South Carolina, and 115 miles northeast of the Interfor plant in Meldrim, Georgia. This strategic positioning will allow the optimization of the log classification and acquisition synergies between these three factories.
As part of the transaction, Interfor will also enter into a long-term supply contract for chip and biomass with the WestRock paper mill in Charleston, South Carolina.
“This transaction is a logical combination with our existing South American platform and reiterates Interfor’s commitment to disciplined growth and investments in the South USA,” said Ian Fillinger, President and CEO of Interfor. “We look forward to welcoming the Summerville employees to the Interfor team and partnering with them to operate and expand the business.”
As a result of this transaction, Interfor’s total annual wood 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 southern United States. .
The transaction is subject to customary conditions and is expected to close in the first quarter of 2021. The purchase price will be financed with cash available.
PROSPECTIVE STATEMENTS
This release contains forward-looking information about the Company’s business prospects, objectives, plans, strategic priorities and other information that is not historical facts. A statement contains forward-looking information when the Company uses what it knows and expects today to make a statement about the future. Statements containing forward-looking information in this press release include, but are not limited to, statements about future timber production at the Summerville plant, log classification optimization, acquisition synergies, expected increases in Interfor’s timber production capacity and expected closure of the transaction in the first quarter of 2021. Readers are cautioned that actual results may vary from the forward-looking information presented in this release, and such forward-looking information should not be unduly relied on. The risk factors that could cause actual results to differ materially from the forward-looking information in this release are described in Interfor’s Annual Management Discussion and Discussion under the heading “Risks and Uncertainties”, which is available at www.interfor.com and at Interfor profile at www.sedar.com. Material factors and assumptions used to develop the forward-looking information in this report include volatility in the sale prices of sawn timber, logs and wood chips; the company’s ability to compete on a global basis; the availability and cost of supplying logs; natural or man-made disasters; Exchange rates; changes in government regulations; the availability of the annual cut allowed by the Company (“AAC”); claims and agreement agreements with indigenous peoples; the company’s ability to export its products; the trade dispute for softwood between Canada and the United States; cut rates payable to the Province of British Columbia (“BC”); environmental impacts of the Company’s operations; interruptions at work; security of information systems; and the existence of public health crises (such as the current pandemic COVID-19). Unless otherwise stated, the forward-looking statements in this release are based on the company’s expectations as of the date of this release. Interfor assumes no obligation to update such forward-looking information or statements, except as required by law.
ABOUT INTERFOR
Interfor is a growth-oriented forest products company with operations in Canada and the United States. The company has an annual production capacity of approximately 3.0 billion board feet and offers a diverse line of wood products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.
Investor contact and more information:
Mike Mackay, vice president of development and corporate strategy
(604) 689-6846