International Forest Products Limited (“Interfor” or the “Company”) (TSX: IFP.A) announced today that it had reached agreement in principle to acquire the assets of Keadle Lumber Enterprises, Inc. of Thomaston, Georgia.
Keadle is a well-regarded producer of high quality southern yellow pine lumber and has been in business since 1947. The mill currently produces 80 million board feet on a one – shift basis. Interfor intends to increase the mill’s kiln capacity and add a second shift to the operation, as market conditions improve, bringing production to an annual rate of 160 million board feet.
The Keadle mill is located approximately 75 miles west of Interfor’s recently acquired mill at Eatonton, Georgia and is part of the Company’s strategy to grow its presence in the U.S. Southeast.The transaction will be financed from Interfor’s existing lines of credit which were recently expanded and extended.
The transaction is subject to final documentation and Board approval and is expected to close prior to the end of the second quarter.