Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, December 3, 2021

Article Excerpt

INTERFOR CORP., $34.25, symbol IFP on Toronto, is one of the world’s largest lumber producers, with operations in Canada and the U.S. It has production capacity of more than 3.9 billion board feet annually. On November 23, 2021, the company announced that it would acquire 100% of the Eacom Timber Corporation for $490 million. Eacom is a leading lumber producer in Eastern Canada. Its seven mills in Ontario and Quebec have a production capacity of 985 million board feet of SPF (spruce pine fir) lumber per year. The Eacom purchase increases Interfor’s total lumber production capacity by 25%—of which 46% will be in the U.S. South, 16% in the U.S. Northwest, 20% in eastern Canada and 18% in B.C. In addition, the acquisition further builds upon Interfor’s already geographically diverse operations, adding production in a new region—specifically, Eastern Canada. That’s one of the major lumber producing regions in North America, and it has highly competitive log costs. North American lumber markets over the near…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.