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Canfor to Acquire Anthony Forest Products

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Canfor Corp., Vancouver, B.C., Canada, has agreed to purchase Anthony Forest Products Co. (AFP) located in El Dorado, Ark., USA, for a purchase price of $93.5 million, which includes approximately $15 million of working capital. 

AFP operates six facilities producing lumber, engineered wood, and wood chips, with a combined capacity of 250 million board feet equivalent. AFP owns a sawmill in Urbana, Ark., which produces premium southern pine lumber and has an operational capacity of 150 million board feet per year. It also owns laminating facilities in El Dorado and Washington, Ga., which produce beams, columns, and other glulam products with an annual combined capacity of 75 million board feet, and owns chip mills in Louisiana and Texas with a total annual capacity of 800,000 tons. AFP also owns a 50% interest in Anthony EACOM Inc., a joint venture with EACOM Timber Corp. located in Sault Ste. Marie, Ont., Canada, which manufactures I- joists, with an annual capacity of 54 million lineal feet.
 
AFP's trailing 12 month EBITDA through August 2015 was approximately $16 million, while EBITDA for its most recent fiscal year ended April 30, 2015, approximated $19 million.

"We are proud to add AFP to our family of Canfor Operations in the U.S. South," said Canfor Corp. President and CEO Don Kayne, AFP has a reputation for quality products and excellent customer service, and with facilities located in abundant and high quality fiber supply areas in Arkansas, Louisiana, and Georgia, this partnership adds exceptional value to our growing U.S. South presence." 

The transaction is expected to close in the fourth quarter 2015 and is subject to customary closing conditions.      

 

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