Business
West Fraser to Acquire U.S. South Lumber Mill
West Fraser to Acquire U.S. South Lumber Mill PR Newswire VANCOUVER, ...
About this update from West Fraser Timber Co. Ltd.
[{"type":"text","content":"\n \n \n \n West Fraser to Acquire U.S. South Lumber Mill\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n PR Newswire\n \n \n \n \n \n VANCOUVER, BC\n \n ,\n \n Oct. 12, 2021\n \n /PRNewswire/ - West Fraser Timber Co. Ltd. (\"\n \n West Fraser\n \n \" or the \"\n \n Company\n \n \") (TSX and NYSE: WFG) announced today that it has entered into an agreement to acquire the Angelina Forest Products lumber mill located in\n \n Lufkin, Texas\n \n for approximately\n \n $300 million\n \n , subject to certain post-closing adjustments. The transaction is anticipated to close following successful completion of U.S. regulatory reviews and satisfaction of customary conditions. Management will provide an update and further details about the transaction on West Fraser's third quarter earnings call on\n \n October 28, 2021\n \n . All dollar amounts in this news release are expressed in U.S. dollars unless noted otherwise.\n \n \n The new turn-key facility, which produces southern yellow pine (\"SYP\") lumber products, began construction in 2018, commenced operations in late 2019 and is expected to progress toward full production capacity of approximately 305 million board feet over the next three to four years. The transaction includes approximately\n \n $4 million\n \n of target working capital and approximately\n \n $24 million\n \n of supplemental tax attributes that are expected to result in a direct cash flow benefit to West Fraser.\n \n \n \n Strategic Rationale and Synergies\n \n \n \n The acquisition is another important step in West Fraser's continued expansion of its U.S. lumber operations.  The new, highly efficient facility is expected to be a top quartile mill that will integrate with and support our existing\n \n East Texas\n \n lumber and OSB business.  Anticipated to be among the lowest cost operations in the Company's lumber mill portfolio, the\n \n Lufkin\n \n mill is strategically located near low-cost and abundant fibre as well as large and growing end-markets and its additional lumber production will allow West Fraser to better serve the Compa...