West Fraser Timber wraps up C$140m acquisition of Spray Lake Sawmills
West Fraser Timber Co. Ltd. (TSX and NYSE: WFG), a prominent name in the lumber industry, has finalized the acquisition of Spray Lake Sawmills, located in Cochrane, Alberta. This significant transaction, valued at C$140 million, marks a pivotal expansion of West Fraser’s operations in the Canadian forestry sector.
Building a Stronger Footprint in Alberta
Ray Ferris, President & CEO of West Fraser, expressed enthusiasm about the acquisition, noting that Spray Lake Sawmills aligns seamlessly with West Fraser’s lumber and treated wood business. He highlighted the value of integrating Spray Lake’s experienced team into the West Fraser family and the company’s commitment to the local community.
Spray Lake Sawmills: A Profile
Spray Lake Sawmills is known for producing high-quality treated wood products, dimensional lumber, and a range of innovative wood residuals and byproducts. With an impressive annual lumber capacity of 155 million board feet, the company also holds two Forest Management Agreements in Alberta, granting an Annual Allowable Cut of about 500,000 m³.
West Fraser Timber completes acquisition of Spray Lake Sawmills in Alberta
Background of the Deal
The deal, initially announced in September 2023, involved West Fraser Timber entering into an agreement to acquire Spray Lake Sawmills. The acquisition underwent a thorough process, including Canadian regulatory reviews and customary conditions, culminating in the successful completion of the transaction.
Enhancing West Fraser’s Canadian Treated Wood Business
This acquisition enables West Fraser to significantly grow its presence in Southern Alberta and expand its Canadian treated wood business. Gaining access to a high-quality timber supply, West Fraser aims to fortify its position in the national and global lumber markets.
West Fraser’s Diverse Operations
West Fraser Timber is a diversified wood products company, operating over 60 facilities across Canada, the United States, the United Kingdom, and Europe. The company’s extensive product range includes lumber, engineered wood products, pulp, newsprint, wood chips, other residuals, and renewable energy, catering to various sectors including home construction, repair, remodelling, industrial applications, and packaging materials.
The acquisition of Spray Lake Sawmills by West Fraser Timber Co. Ltd. represents a strategic enhancement of its lumber and treated wood portfolio, reinforcing its leadership in the global wood products industry.