Canfor expands engineered wood products portfolio with acquisition of I-Joist manufacturing facility
Canfor Corporation has signed an agreement to acquire the I-joist business of PinkWood Ltd. for $68 million, including working capital. Established in 2009, PinkWood operates the largest I-joist manufacturing facility in Western Canada, supplying engineered wood joists for residential, multi-family, and commercial construction projects.
Based in Calgary, Alberta, PinkWood employs approximately 120 people and has an annual production capacity of 46 million linear feet of engineered wood products. The acquisition price reflects a five-times EBITDA multiple based on current production volumes and earnings, including anticipated synergies. Following recent capital investments, the company sees substantial opportunities for future growth and EBITDA expansion. Under the terms of the agreement, $55 million will be paid at closing, with the remaining $13 million payable over a five-year period.
“PinkWood is a leading manufacturer of high-quality I-joists with a strong management team and stable returns,” said Susan Yurkovich, president and CEO of Canfor. “Canfor’s acquisition of PinkWood complements our operations in Western Canada by enhancing product diversification and supporting the continued expansion of our value-added manufacturing capabilities. We are pleased to welcome the PinkWood team and believe this acquisition will strengthen our existing asset base and create opportunities for growth and value creation.” Susan added further.
Following the acquisition, PinkWood will continue to operate under its existing brand as a wholly owned subsidiary of Canfor. The company expects to fund the transaction through available cash reserves and existing liquidity. Completion of the deal is anticipated in the third quarter, subject to customary closing conditions and regulatory approvals.
Canfor is a global leader in the manufacturing of low-carbon forest products, delivering sustainable, high-quality wood solutions to markets worldwide.
Read more news on: forestry, forest products, sustainable solutions, wood industry, engineered wood
Get more updates on European woodworking industry through: www.woodandpanel.com