Tembec completes sale of Toronto, Ontario, flooring plant assets and Muskoka, Vintage brands for C$13M
November 25, 2011
– Tembec today announced that the sale transaction for its Toronto (Ontario) flooring plant assets as well as its Muskoka and Vintage brands with a private company has closed. Total consideration for the transaction is approximately $13 million which remains subject to closing working capital adjustments.
Tembec will also close the Huntsville (Ontario) hardwood flooring plant. This plant will cease operations in January 2012.
The sale of the Toronto plant and the shutdown of the Huntsville plant will result in a one-time charge of $2 million that will be recorded in the Company's December 2011 quarterly financial results. During the last 12-month period, the Toronto and Huntsville flooring plants generated sales of $48 million, EBITDA of $1.9 million and operating earnings of $1.6 million.
The private company is part of Boa-Franc Inc., which is the North American leader in the manufacturing prefinished hardwood floors. Boa-Franc is based in Saint-Georges de Beauce, Quebec.
Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.