GreenFirst Forest Products Announced Sale of Two Quebec Sawmills

SEATTLE (Scrap Monster): GreenFirst Forest Products, Inc. announced that it has entered into a definitive agreement with Quebec-based family-owned forestry company Chantiers Chibougamau Ltee towards sale of its Quebec assets.

The sale agreement covers its La Sarre and Bearn sawmills in Quebec, its Abitibi and Temiscamingue forestry operations, as well as their related assets and business operations. The two sawmills together have a combined production capacity of 245MMfbm per annum. The deal, valued at approximately $90 million, is expected to close during the initial quarter next year.

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The sale, unanimously approved by GreenFirst’s Board of Directors, is subject to customary closing conditions, including receipt of applicable regulatory approvals and the Competition Act approval. Meantime, Chantiers Chibougamau is believed to have all approvals to conclude the transaction.

GreenFirst will use the net proceeds from the sale to further strengthen its balance sheet and support its investments in Ontario operations.

Paul Rivett, Chairman, GreenFirst Forest Products, Inc. noted that the divestiture will help it to unlock shareholder value and focus on its Ontario operations. He thanked the company’s Dedicated Quebec-based employees for their longstanding efforts and support.