Interfor Corporation (TSX:IFP) entered into an agreement to acquire Eacom Timber Corporation from Kelso & Company, L.P. for CAD 490 million on November 23, 2021. The purchase price is CAD 490 million, on a cash and debt free basis, which includes CAD120 million of net working capital. In addition, Interfor will assume EACOM's countervailing and anti-dumping duty deposits at closing.

EACOM generated EBITDA of CAD 475 million for the twelve months ended September 30, 2021. Interfor intends to finance the acquisition with a combination of cash on hand and its existing credit facilities. Éric Larouche has been appointed as Senior Vice President, Eastern Operations and will be responsible for Interfor's manufacturing, woodlands and forestry activities in Eastern Canada.

The completion of the acquisition is subject to customary conditions and regulatory approvals. The transaction is expected to close in the first half of 2022. The acquisition will be immediately accretive to Interfor's earnings and is expected to provide attractive returns in both the near-term and over the long-term.

Davies Ward Phillips & Vineberg LLP acted as legal advisor to Interfor Corporation