Resolute buys three sawmills in the United States for $ 163 million
Resolute Forest Products has reached an agreement to purchase three Conifex Timber sawmills in the southern United States for approximately US $ 163 million. These sawmills, located in Florida and Arkansas, produce lumber and treated wood for the American market.
C onifex, a Vancouver-based company, says the transaction will allow it to fully repay its softwood lumber credit facilities and strengthen its financial position.
Resolute, headquartered in Montreal, says nearly 25% of its total production capacity will be in the southern United States after the Conifex factories are acquired. The company plans to spend approximately $ 20 million to modernize the facilities at the recently suspended El Dorado, Arkansas sawmill, and to gradually resume production in 2021. Resolute predicts that most employees at the three plants de Conifex, including members of management, will remain with the company under similar conditions of employment. The transaction is expected to close in the first quarter of 2020.