Resolute Completes Acquisition of Three U.S. Sawmills for $163 Million
The sawmills produce construction-grade dimensional lumber and decking products from locally-sourced southern yellow pine for distribution within the United States.
Feb. 3, 2020 (Press Release) - Resolute Forest Products Inc. today announced that, on February 1, 2020, it completed the previously disclosed acquisition of Conifex Timber Inc.'s three sawmills in the U.S. South, pursuant to the terms of the securities purchase agreement dated December 23, 2019. The total purchase price was $163 million, plus working capital, which is estimated at $13 million.
The three sawmills, with combined production capacity of 550 million board feet, are located in Cross City (Florida), and Glenwood and El Dorado (Arkansas). The facilities produce construction-grade dimensional lumber and decking products from locally-sourced southern yellow pine for distribution within the United States.
"We are pleased to welcome the new employees to Resolute," stated Yves Laflamme, president and chief executive officer. "The acquisition of the U.S. sawmills is the right move, at the right time, for Resolute; it will give us immediate scale in an attractive region, with quality assets in a rich fiber basket, close to growing end-markets."
This transaction diversifies the company's lumber production: when operating to capacity, almost 25% of Resolute's production will be in the U.S. South.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. The company owns or operates some 40 facilities, as well as power generation assets, in the United States and Canada. To learn more, visit: www.resolutefp.com
SOURCE: Resolute Forest Products Inc.