GreenFirst Forest Products Concluded Offloading of Quebec Assets

SEATTLE (Scrap Monster): GreenFirst Forest Products Inc. announced that it has completed the previously announced sale of its Quebec assets to the province-based family-owned forestry company Chantiers Chibougamau Ltée for a total consideration of around $94 million, subject to final adjustments.

The sale covers its La Sarre and Béarn sawmills, Abitibi and Témiscamingue forestry operations and related assets and business operations. The estimated combined annual production capacity of the two mills is around 245MMfbm. The proceeds from the sale will be used to strengthen its balance sheet and towards supporting its investments in Ontario operations.

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Paul Rivett, Interim Chief Executive Officer and Executive Chairman, GreenFirst Forest Products thanked Chantiers Chibougamau for the smooth closing of the transaction. The company looks forward to continue to work productively with their team. The company will now focus on improving its Ontario operations and reviewing all possible capital allocation opportunities, he said. Furthermore, he thanked the company’s dedicated Quebec-based employees for their longstanding efforts and support over the past several years.