Interfor completes US$129.9M acquisition of Tolleson Lumber in Georgia from Ilim Timber Continental, adding sawmills in Perry, Preston, and reman facility in Perry, plans to open office in Peachtree City to serve as hub for Southeast US operations
VANCOUVER, British Columbia
March 17, 2014
– INTERNATIONAL FOREST PRODUCTS LIMITED ("Interfor" or the "Company") (TSX:IFP.A) announced today it has completed the acquisition of Tolleson Lumber Company ("Tolleson") of Perry, Georgia, from Ilim Timber Continental, SA ("Ilim Timber").
Immediately following the closing, Paul Herbert, who retired recently as the CEO of Ilim Group, a company indirectly affiliated with Ilim Timber, was appointed to Interfor's Board of Directors. Mr. Herbert will stand for election as a director of the Company at Interfor's Annual General Meeting in May.
The addition of Tolleson's two sawmills in Perry and Preston and a remanufacturing facility in Perry makes Interfor one of the five largest lumber producers in North America, and the largest in Georgia.
To accommodate its growth in the US Southeast, Interfor has appointed George T. Georgiev, the President of Tolleson since 2012, as Regional Vice President, Georgia. He will report to Joe Rodgers, Interfor's Senior Vice President, US Operations, and will provide leadership for Interfor's six mills in Georgia, including wood procurement.
The Company also announced plans to open an office in Peachtree City, a suburb of Atlanta, Georgia, to serve as a hub for its operations in the US Southeast.
Total consideration paid by Interfor for Tolleson amounted to US$129.9 million in cash and retained liabilities plus 3.68 million of the Company's Class A Subordinate Voting Shares.
This release contains information and statements that are forward-looking in nature, including, but not limited to, statements containing the words "will" and "is expected" and similar expressions. Such statements involve known and unknown risks and uncertainties that may cause Interfor's actual results to be materially different from those expressed or implied by those forward-looking statements. Such risks and uncertainties include, among others: general economic and business conditions, product selling prices, raw material and operating costs, changes in foreign-currency exchange rates, and other factors referenced herein and in Interfor's Annual Report and Management Information Circular available on www.sedar.com. The forward-looking information and statements contained in this report are based on Interfor's current expectations and beliefs. Readers are cautioned not to place undue reliance on forward-looking information or statements. Interfor undertakes no obligation to update such forward-looking information or statements, except where required by law.
Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of 2.6 billion board feet and offers one of the most diverse lines of lumber products to customers around the world. For more information about Interfor, visit our website at www.interfor.com.