Rayonier to Sell Wood Products Business to Interfor
 Print this article | Send to Colleague
Rayonier, Jacksonville, Fla., USA, this week agreed to sell all of the assets of its Wood Products business to International Forest Products (Interfor), Vancouver, B.C., Canada, for $80 million. The sale, expected to close in the first quarter, will result in an after-tax gain of approximately $40 million.
Rayonier's Wood Products business, headquartered in Baxley, Ga., consists of three lumber mills located in Baxley, Swainsboro, and Eatonton, Ga. As part of the transaction, Interfor has agreed to hire all 260 current Wood Products employees. The three mills contributed approximately $10 million in operating income to Rayonier in 2012.
"This sale represents another key move in our strategy to fully position our manufacturing operations in the specialty chemicals sector," said Paul Boynton, Rayonier chairman, president, and CEO. "At the same time, the conversion of our commodity fluff pulp business to cellulose specialties remains on track for a mid-2013 startup.
"We are delighted with this opportunity to transition our Wood Products operations to a world-class company focused on lumber and wood products manufacturing," continued Boynton. "Rayonier has enjoyed a long association with Interfor, supplying their lumber business in the Pacific Northwest for many years, and we look forward to expanding that relationship into the Southeast."
Interfor is a producer of lumber and wood products, primarily in the Northwest U.S. and Canada. Duncan Davies, Interfor's president and CEO, noted that "the acquisition of Rayonier's Wood Products Business is consistent with our strategy of adding capacity in attractive regional markets. We have been looking for an opportunity in the Southeast for some time and consider this is an ideal time to proceed."
The acquisition will bring Interfor's annual capacity to more than 2 billion board feet and represents the company's first investment in the Southeast region of the U.S.
|
|
