Interfor To Acquire Chaleur Forest Products

Interfor Corporation has signed an agreement with an affiliate of the Kilmer Group to acquire the equity interests in the entities comprising Chaleur Forest Products. Chaleur owns two modern and well-capitalized sawmill operations located in Belledune and Bathurst, NB, with a combined annual lumber production capacity of 350 million board feet. Chaleur also operates a woodlands management division based out of Miramichi, NB, that manages approximately 30 per cent of the total crown forest in New Brunswick. This division provides a secure source of fibre supply for the sawmill operations as well as a stable, long-term stream of cash flow from third-party log sales, licence management fees, and silviculture activities. Interfor says the acquisition is consistent with its growth-focused strategy as a pure-play lumber producer and builds upon its recent expansion into eastern Canada with further geographic diversity.