Interfor to acquire Monticello sawmill in Southern Arkansas

LITTLE ROCK (Scrap Monster): Lumber major Interfor Corporation has announced that it has entered into an agreement towards purchase of sawmill located in Monticello, Arkansas. The sawmill currently owned by The Price Companies, Inc. is situated approximately 90 miles southeast of Little Rock.

According to Duncan Davies, President and CEO, Interfor, the acquisition will help the company to expand its total annual lumber capacity to 3.2 billion board feet. The US southeast lumber capacity will now total 1.3 billion board feet. Sources indicate that the deal was reached for an upfront amount of approximately $29.255 million. In addition, Interfor will also pay for the closing log and lumber inventory at the mill and certain capital expenditure related adjustments.

As per estimates, the Monticello sawmill produced approximately 75 million board feet of lumber during the year ended March 31^st this year. Construction works are currently underway towards installation of continuous dry kiln that is expected to be completed during Q3 2015. These upgradations are likely to lift the mill’s lumber capacity to over 100 million board feet per annum. Also, Monticello sawmill has strategic access to strong timber harvests and key lumber markets.

The deal is expected to close during June this year.

Interfor is a growth-oriented lumber company with operations in Canada and the United States. The Company has annual production capacity of more than 3.1 billion board feet and offers one of the most diverse lines of lumber products to customers around the world.