Interfor Corp. takes over Eacom Timber for CAD490m

On 23 November, Interfor came to an agreement with a subsidiary of the investment company Kelso & Company on the acquisition of all the shares in Eacom Timber. The conclusion of the takeover is subject to the usual conditions and official approvals and is expected in the first half-year 2022. Under Interfor, the Eacom works are to remain in operation, the existing personnel is to be kept on, and the existing office in Montreal retained.

The purchase prices is CAD490m without cash and debts, including CAD120m in net working capital. Upon conclusion of the transaction, Interfor will also take over the countervailing and anti-dumping duty (CV and AD duty) from Eacom Timber at a price of 55% after tax. By 30 September, Eacom Timber had paid CV and AD duty to the amount of US$150m. Interfor intends to finance the acquisition from cash resources and existing lines of credit.
Eacom has been part of Kelso & Company’s portfolio since 2013 and operates a total of seven sawmills with a combined annual capacity of 985m bdft in the east of Canada. In addition to this, Eacom also has an annual output of approximately 60m bdft of planed products and roughly 70m ft of I-joists. Eacom also has felling rights for 3.6m m³ per year in eastern Canada.

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