Canfor Corporation has entered into an agreement to purchase Anthony Forest Products Company located in El Dorado, Arkansas ("AFP") for a purchase price of $93.5 million which includes approximately $15 million of working capital, as the company said in the press release received by Lesprom Network.
Concurrent with the acquisition, the Company has priced a $100 million long term debt financing with Prudential Capital Group. The senior unsecured notes will carry an interest rate of 4.40% and will have an average maturity in 2024. The financing will close on October 2, 2015.
"We are proud to add AFP to our family of Canfor Operations in the US South," said Canfor Corporation 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 fibre supply areas in Arkansas , Louisiana and Georgia this partnership adds exceptional value to our growing US South presence"
The transaction is expected to close in the 4Q 2015 and is subject to customary closing conditions.
AFP operates 6 facilities producing lumber, engineered wood and wood chips with a combined capacity of 250 mmbf equivalent. AFP owns a sawmill located in Urbana, Arkansas which produces premium Southern pine lumber and has an operational capacity of 150 mmbf per year.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia ("BC") with interests in BC, Alberta, North and South Carolina, Alabama, Georgia and Mississippi.