Interfor Corporation has agreed to acquire 100% of Chaleur Forest Products for C$325 million, enhancing its lumber production capacity and operational efficiency in Eastern Canada.

Information on the Target

Chaleur Forest Products, based in New Brunswick, Canada, is a prominent player in the lumber industry, owning two modern sawmill operations located in Belledune and Bathurst. With a combined annual production capacity of 350 million board feet, Chaleur stands as a well-capitalized enterprise. Additionally, the company oversees a woodlands management division in Miramichi, which plays a crucial role in managing approximately 30% of the total Crown forest in New Brunswick. This division not only secures a steady supply of fiber for the sawmills but also generates consistent long-term revenue through third-party log sales, license management fees, and silviculture activities.

Industry Overview in New Brunswick

The forestry and lumber industry in New Brunswick is marked by its sustainable practices and strong regulatory support. The province boasts a robust network of Crown land, which provides ample access to timber resources, enabling companies to operate efficiently while adhering to environmental regulations. The competitive log supply is complemented by a skilled workforce, enhancing the attractiveness of the region for timber processing.

Moreover, the demand for lumber has seen a significant uptick due to various factors including increased construction activity and the ongoing trend towards home renovation. Coupled with the rising global interest in sustainable building materials, New Bruns