West Fraser Timber Co Ltd
(TSX:WFG)
Shares Issued 81,274,319
Last Close
9/21/2023
$95.62
Friday September 22 2023
- News Release
Mr.
Ray Ferris
reports
WEST FRASER TO SELL TWO PULP MILLS IN
WESTERN CANADA
TO ATLAS HOLDINGS
West Fraser Timber Co. Ltd.
has signed a definitive agreement for the sale of
West Fraser's
Quesnel River
pulp mill in
Quesnel, B.C.
, and its
Slave Lake
pulp mill in
Slave Lake, Alta.
to
Atlas Holdings
. Atlas owns and operates several pulp, paper and wood products businesses in
Canada
and
the United States
.
The agreement announced today includes related woodlands operations and timber holdings in
Alberta
and a long-term fibre supply agreement for the Quesnel River Pulp facility.
Upon closing of the transaction, the
Quesnel River
and
Slave Lake
pulp mills will be operated by
Millar Western Forest Products
("Millar Western"), which joined the global Atlas family of manufacturing and distribution businesses in 2017. Millar Western is a more than 100-year-old Canadian forest products company headquartered in
Edmonton
with existing pulp mill operations in
Alberta
, establishing a strong foundation and a bright future for the
Quesnel River
and
Slave Lake
pulp mills.
Combined total cash proceeds from the sale are
$120-million
(
U.S.
).
"We believe this transaction provides these two great assets and teams a strong strategic future while allowing
West Fraser
to focus our resources on our objective to be the premier wood building products company in
North America
," said
Ray Ferris
,
West Fraser's
president and chief executive officer. "
Atlas Holdings
and Millar Western bring deep experience in the pulp sector, and we look forward to continuing to work together as a key fibre supplier to Quesnel River Pulp."
"This transaction will provide the dedicated and skilled teams at
Quesnel River
and
Slave Lake
with a solid future. Our team intends to continue investing in these high-quality mills and we look forward to collectively strengthening our product offerings and value proposition to the global BCTMP marketplace," said
David Anderson
, CEO of Millar Western.
"Millar Western is highly respected as a leader in wood products in the region and beyond and we look forward to welcoming the
Quesnel River
and
Slave Lake
mills to the Atlas family of companies," said Atlas partner
Neil Mahajan
.
The transaction is anticipated to close following successful completion of customary regulatory reviews and satisfaction of customary closing conditions.
West Fraser
will provide a further update during its third quarter results conference call.
TD Securities Inc.
is acting as exclusive financial advisor and
McMillan LLP
is acting as legal advisor to
West Fraser
.
Davies Ward Phillips & Vineberg LLP
is acting as legal advisor to Atlas.
About
West Fraser Timber Co. Ltd.
West Fraser
is a diversified wood products company with more than 60 facilities in
Canada
,
the United States
, the
United Kingdom
, and
Europe
. From responsibly sourced and sustainably managed forest resources, the Company produces lumber, engineered wood products (OSB, LVL, MDF, plywood, and particleboard), pulp, newsprint, wood chips, other residuals, and renewable energy.
West Fraser's
products are used in home construction, repair and remodelling, industrial applications, papers, tissue, and box materials.
We seek Safe Harbor.
