Kilmer Group announces sale of Chaleur Forest Products to Interfor
by CM Staff
Chaleur invested more than $40 million in capital projects, allowing Chaleur to make changes to its operations including mill automation and just-in-time equipment reporting.
TORONTO — On Dec. 1, Kilmer Group announced the completion of its sale to Interfor Corporation of 100% of the equity interests comprising Chaleur Forest Products. Chaleur owns two sawmill operations located in Belledune and Bathurst, New Brunswick. Chaleur is the second-largest producer of lumber in Atlantic Canada, with an aggregate annual lumber production capacity of 350 million board feet. Chaleur also operates a woodlands management division based out of Miramichi that manages 2.3 million acres of Crown forests (representing approximately 30% of total Crown forest land in New Brunswick).
Kilmer Group’s investment in Chaleur, which is held through Kilmer Forestry LP, began in March 2016, when it acquired Chaleur sawmills. In May 2018, Kilmer Forestry acquired Fornebu Lumber Company and in May 2020, Miramichi Lumber Products. Under Kilmer Forestry’s management, Chaleur invested more than $40 million in capital projects, allowing Chaleur to make changes to its operations including mill automation, just-in-time equipment reporting, asset improvements and projects to address environmental sustainability.
As part of the acquisition of Miramichi Lumber Products, Chaleur was able to add a third shift at the Bathurst sawmill, which provided employment when the closure of the Belledune smelter in 2019 resulted in over 400 people losing their jobs.
“I am very proud of the accomplishments Chaleur and Kilmer have achieved together, said Larry Tanenbaum, Chairman and CEO of Kilmer Group. “And the transaction with Interfor is a strong opportunity for Interfor to leverage New Brunswick’s competitive market and generate long-term benefits for shareholders, customers, and employees alike.”
Kilmer Group’s existing investments in New Brunswick will continue to operate, including Coca-Cola Canada Bottling Limited, Coca-Cola’s exclusive franchised bottling and distribution partner across Canada.
Said Duane Woods, a Chaleur founding partner and President of Chaleur during Kilmer Forestry’s ownership, “Chaleur is a high-quality business that will represent an exciting and complementary addition to Interfor. We are proud of our accomplishments to date which have been achieved through Kilmer’s commitment to the business, its leadership and vision, and through the hard work and dedication of our superb workforce. We are pleased to complete this transaction with Interfor and are confident in Chaleur’s future success.”
