West Fraser completes acquisition of the Gilman Companies

Sorgente:
WF/Fordaq
Visite:
820
  • text size

West Fraser Timber Co. Ltd. announced this week that the acquisition of six sawmills and a finger-joint mill from the Howard Gilman Foundation and other shareholders has been completed.

The operations employ approximately 900 people and have a combined annual production capacity of 700 million board feet of lumber. All of the mills produce lumber from southern yellow pine. After considering estimated tax benefits, the purchase price represents approximately six times trailing 12 months EBITDA of the acquired operations. In the 12 months ended June 30, 2017 the Gilman Companies generated EBITDA of US$67 million on estimated sales of US$330 million.

The acquisition is an important step in West Fraser's continuing expansion of its U.S. lumber operations. West Fraser has now a combined Canadian and U.S. lumber production capacity of 7.2 billion board feet. Canadian capacity of spruce/pine/fir (SPF) lumber will represent 57% of capacity and U.S. capacity of southern yellow pine (SYP) lumber will represent 43% of capacity.

West Fraser is a diversified wood products company producing lumber, LVL, MDF, plywood, pulp, newsprint, wood chips and energy with facilities in western Canada and the southern United States.

Manda commento