Structurlam closes US$83.5M sale to Mercer
by CM Staff
After several rounds of bidding, the Company declared Mercer’s revised US$83.5 million bid to be the winner and received U.S. court approval of the sale during the Chapter 11 proceedings.
PENTICTON — Structurlam Mass Timber Corporation, a mass timber manufacturer in North America, announced that it has closed on the sale of substantially all its assets to Mercer International Inc. for US$83.5 million.
The Company had previously announced in April it had entered into a stalking horse asset purchase agreement (Stalking Horse APA) with Mercer for US$60 million in connection with the Company filing for chapter 11.
The Stalking Horse APA was subject to higher and otherwise better bids as part of a chapter 11 auction which was conducted on May 23, 2023. After several rounds of bidding, the Company declared Mercer’s revised US$83.5 million bid to be the winner and received U.S. court approval of the sale during the sale hearing conducted as part of the Chapter 11 proceedings. The Company also received sale approval from the Supreme Court of British Columbia on June 1, 2023.
“This is as successful an outcome as any one of our stakeholders could have hoped for. A lot of hard work by many people was required to get us through a very difficult period for the Company, so this is indeed a very special moment. I wish Mercer and all our employees the very best as they go forward,” said Matthew Karmel, CEO of Structurlam Mass Timber Corporation.
Structurlam was advised by Stifel and Miller Buckfire as its investment banker and Alvarez & Marsal served as its financial advisor. Chipman Brown Cicero & Cole, Paul Hastings and Gowling WLG served as legal counsel.
