VANCOUVER—Forest products company Canfor Corp. has acquired the operating assets of Jackson, Miss.-based Southern Lumber Co., Inc. for about US$48.7 million.
The acquisition includes a sawmill located in Hermanville, Miss., which is a large log southern yellow pine dimension mill that manufactures long, wide-width lumber.
The sawmill is in an area of exceptionally high quality fibre and is well suited for higher value product lines. The operation has a capacity of 90 million board feet.
Completion of the transaction is expected at the end of the first quarter of 2015 and is subject to customary closing conditions.
“The Southern Lumber sawmill is a top quartile margin business located in an excellent fibre supply area that will provide us with additional higher value opportunities for our global markets,” said Canfor president and CEO Don Kayne.