International Forest Products Ltd (Interfor) has agreed a deal with Portac Ltd to acquire its operations on the Olympic Peninsular in Washington State.
The US$28.25m deal includes a sawmill and planer operation, offering Interfor production capacity of 145 million board feet per year.
As well as adding to the company’s production volume, Interfor said that it expects to produce annual synergies of up to US$2m a year through reduced administrative costs and operational efficiencies.
“The Portac mill is an excellent fit with our operations in the area,” said Interfor president and chief executive officer Duncan Davies.
“The mill produces dimension products and small timbers in lengths up to 20ft, which will nicely complement our product mix and presence in the Puget Sound market.”
Interfor said the acquisition is part of its mission to establish a broad geographic base, following on from deals with Weyerhaeuser for the rights to 356,000m³ of harvestable timber in the Kamloops region of Canada and purchasing three North American sawmills from Pope & Talbot Ltd.
