Canfor Corporation (TSX:CFP) entered into an agreement to acquire Solid Wood Operations and Associated Tenure of Millar Western Forest Products Ltd. for CAD 420 million on December 16, 2021. The purchase price includes CAD 56 million in working capital. The purchase price represents a multiple of 3 times 2020 and 2021 average EBITDA.

Canfor anticipates financing this transaction with cash and liquidity on hand. The transaction is subject to customary closing conditions including regulatory approvals. The transaction is expected to close in the first quarter of 2022.

RBC Capital Markets and Stifel Nicolaus Canada acted as financial advisors to Millar Western. Dentons Canada LLP acted as legal advisor to Millar Western.