Interfor Corp. (TSX:IFP) is buying a sawmill in Monticello, Ark., for just under US$29.3 million plus the cost of log and lumber inventories and certain pre-closing capital expenditures.
The mill, about 145 kilometres southeast of Little Rock, produced about 75 million board feet of lumber in the past year, Interfor said in a statement announcing the purchase from The Price Companies Inc.
It says improvements underway should increase that to about 100 million board feet in the near future.
As a result of the purchase, Interfor’s total annual lumber capacity will increase to 3.2 billion board feet, including some 1.3 billion board feet in the U.S. Southeast.
The deal is expected to close in June.