Interfor Corporation — a British Columbia-based, growth-oriented forest products company with operations in Canada and the U.S. — has reached an agreement with an affiliate of Kelso & Company to acquire 100% of the equity interests of EACOM Timber Corporation.

EACOM is based in Quebec.

The purchase price was more than $383 million (C$490 million) on a cash and debt free basis, which includes more than $93 million (C$120 million) of net
working capital, Interfor said.

“This transaction makes Interfor a truly North American lumber producer, with operations in all the key fibre regions on the continent, further diversifying and de-risking our operating platform and enhancing our growth potential and opportunity set,” said Ian Fillinger, president and CEO. “This transformational growth secures a desirable SPF product mix to meet the growing demand of our customers, at a time when SPF fibre supply is under increasing pressure in other jurisdictions in North America and around the world. These are productive and well-managed mills, and we see meaningful opportunities to further enhance their performance by integrating them with our portfolio and applying our proven operating expertise. We are excited for the opportunities that the acquisition brings, and we look forward to welcoming the talented EACOM team into our company and partnering with them to operate and grow the business in the years ahead.”