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- Interfor (OTCPK:IFSPF +2.4%) agrees to acquire Canadian lumber producer Eacom Timber Corp. for C$490M in cash, including C$120M of net working capital.
- Interfor also will assume Eacom's countervailing and anti-dumping duty deposits at closing; as of September 30, Eacom had paid cumulative CV and AD duties of US$150M.
- Interfor says the acquisition will raise its total lumber production capacity by 25% to 4.9B board ft. on a pro-forma basis, of which 46% will be in the U.S. South, 16% in the U.S. Northwest, 20% in eastern Canada and 18% in British Columbia.
- Front-month lumber futures have surged 44% over the past week, ending Monday at $772.60 per thousand board feet, due to the severe flooding in British Columbia.