USA - West Fraser Timber Co. Ltd. Announced that it has entered into an agreement to acquire the Angelina Forest Products lumber mill located in Lufkin, Texas for approximately USD 300 million, subject to certain post-closing adjustments. 

The transaction is anticipated to close following successful completion of U.S. regulatory reviews and satisfaction of customary conditions.  Management will provide an update and further details about the transaction on West Fraser’s third quarter earnings conference call on October 28, 2021. 

The new turn-key facility, which produces southern yellow pine (“SYP”) lumber products, began construction in 2018, commenced operations in late 2019 and is expected to progress toward full production capacity over the next three to four years.

The acquisition is another important step in West Fraser’s continued expansion of its U.S. lumber operations.  The new, highly efficient facility is expected to be a top quartile mill that will integrate with and support existing East Texas lumber and OSB business.  Anticipated to be among the lowest cost operations in the Company’s lumber mill portfolio, the Lufkin mill is strategically located near low-cost and abundant fibre as well as large and growing end-markets and its additional lumber production will allow West Fraser to better serve the Company’s growing customer base in Texas and the southern U.S.

 Upon completion of this transaction, West Fraser will have combined Canadian and U.S. lumber production capacity of approximately 7.0 billion board feet, with U.S. capacity of SYP lumber representing approximately 50% of the Company’s capacity.