Interfor to acquire Chaleur Forest Products from Kilmer Group

The purchase price is C$325 million.

  • Chaleur Forest Products is the result of the consolidation of two forest product companies, Chaleur Sawmills and the Bathurst Sawmill
  • The deal is consistent with Interfor’s growth-focused strategy as a pure-play lumber producer, the company said
  • Kilmer Group is led by chairman and CEO Lawrence Tanenbaum

Vancouver-based forest products company Interfor Corp has agreed to acquire 100 percent of Belledune, New Brunswick-based Chaleur Forest Products for C$325 million. The deal is expected to close in the fourth quarter.

The seller is Kilmer Group, a Canadian private investment firm.

Chaleur Forest Products is the result of the consolidation of two established forest product companies, Chaleur Sawmills and the Bathurst Sawmill. It owns two modern and well-capitalized sawmill operations located in Belledune and Bathurst, New Brunswick.

Interfor expects the acquisition to be immediately accretive and to provide attractive returns in both the near-term and over the long-term. It estimates Chaleur’s mid-cycle EBITDA to be approximately C$50 million per year pre-synergies. Interfor expects to achieve synergies of C$5 million per year from combined sales and marketing opportunities, shared purchasing programs and general and administrative expense reductions.

“This acquisition is consistent with Interfor’s growth-focused strategy as a pure-play lumber producer and builds upon our recent expansion into Eastern Canada with further geographic diversity,” said Ian Fillinger, president and CEO, in a statement.

Based in Toronto, Kilmer Group includes Kilmer Van Nostrand Co, a family-owned and professionally managed holding company, Kilmer Capital Partners‎, Kilmer Brownfield Management, KD Infrastructure and Kilmer Sports. It focuses on investing in three verticals: private equity, infrastructure and real estate and sports and media.

Kilmer is led by chairman and CEO Lawrence Tanenbaum.