Canfor buys Quebec sawmill, forestry companies

Canadian Forest Industries, May 2003

In something of a surprise move east, BC-based Canfor has purchased two privately owned Quebec lumber and timber harvesting companies. Canada's largest lumber producer announced in mid April that it will acquire Daaquam Lumber Inc. and Produits Forestiers Anticosti Inc. for $50 million in cash and assumed debt. The deal was expected to close May 30, 2003. Daaquam operates a modern sawmill near the Quebec/Maine border producing 150 million bdft/yr and with harvesting rights in the area. It has spent some $30 million in capital improvements on this mill since 1996, and is in the midst of building a new stud mill in Maine, with a projected capacity of another 150 million bdft. Anticosti holds cutting rights and runs harvesting operations on Anticosti Island.

"The acquisition of Daaquam provides Canfor with an essential platform for future growth in eastern North America," says Canfor ceo and president David Emerson. "Daaquam's product mix matches our customers' needs, provides significant logistical synergies and once again signals our commitment to serving the growth requirements of our key customers."

Daaquam president Richard Belanger will join Canfor's senior management team, leading the Daaquam operations, handling the Maine stud project, and managing future eastern growth strategies.

More info at www.canfor.com