International Forest Products Ltd (Interfor) has agreed to acquire Riverside Forest Products in a C$368m deal which will make it the world’s seventh largest lumber company.
Interfor has offered Riverside shareholders C$39 per share plus its own shares in the deal, which is subject to regulatory approval.
The agreement follows Riverside’s strategic review, started after Tolko Industries made a hostile takeover bid for the company during the summer.
Duncan Davies, Interfor’s president and chief executive officer, said: “This acquisition is a key element of our strategy to transform Interfor into a world-class, globally competitive wood products company.”
The transaction will create a company with C$1.5bn annual sales, a lumber capacity of 2.3 billion board feet and 530 million ft2 of panel production. Riverside will also give Interfor a greater presence in the British Columbia Interior.
