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Simpson Lumber Sells Mill Operations & Tacoma Headquarters
Simpson Lumber has a deal to sell off four sawmill operations and its Tacoma headquarters. Simpson will sell the business and assets of its four sawmill operations in Tacoma and Longview, Washington; as well as two East Coast mills to Vancouver, B.C.-based Interfor Corporation.
From the sound of it, Interfor intends to continue operations at the mills, although the Simpson press release doesn't explicitly say so. Here's the full Simpson press release:
Simpson Lumber Company, LLC Announces Sale Of Mill Operations
Interfor will acquire company businesses, assets
TACOMA, Wash. — Simpson Lumber Company, LLC and Interfor Corporation have agreed to terms for Interfor to acquire the business and assets of four Simpson sawmill operations. Interfor will acquire Simpson Lumber’s mills in Tacoma and Longview, Washington; Meldrim, Georgia; and Georgetown, South Carolina. The Simpson Lumber headquarters building in Tacoma, Washington will also be part of the sale.
“This is exciting news for our employees and the communities in which we operate. Interfor is a company with a growth strategy focusing on manufacturing excellence,” said Allan Trinkwald, president, Simpson Lumber Company, LLC. “A leading forest product company, Interfor has made long-term commitment to the industry and after this transaction will be one of the largest lumber producers in the world.”
Simpson Lumber operations in the Shelton, Washington area are not part of the proposed sale to Interfor. Simpson will continue its strategic review of the Shelton operations and explore all options, which include long-term operations or a potential sale.
Simpson will continue to own the ongoing Simpson Door Company operations.
Based in Vancouver, Canada, Interfor is of one of North America's top softwood lumber manufacturing companies. The company operates sawmills in the United States and Canada.
“This transaction is another important milestone for Interfor,” said Duncan Davies, Interfor’s president and CEO. “The Simpson operations are a great strategic fit with our platforms in the Southeast and Pacific Northwest, with significant operational and financial upside.”
The transaction is subject to customary closing conditions and regulatory approvals. It is anticipated that the sale will be completed in the first quarter of 2015.
Simpson Lumber currently has 810 employees. Leaders of Simpson Lumber and Interfor are committed to making a smooth transition to the new ownership for both the long- and short-term good of employees, customers, and the communities.
According to the Interfor press release, the deal comes with a price tag in the neighborhood of $94.7 million, and will increase the Canadian company's operations by 30%, with "Significant operational improvement potential."
This comes less than a year after Simpson's announcement last March that it would sell its paper mill operations to Georgia-based RockTenn. Simpson will continue its lumber operations in Shelton, but the company will continue its strategic review of long-term operations, which does not preclude a future sale. Simpson Door Company operations will also continue.
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