- West Fraser Timber Co. Ltd. (TSX:WFG) signed a definitive agreement for the sale of two of its pulp mills to Atlas Holdings
- West Fraser is selling its Quesnel River Pulp mill in Quesnel, B.C., and its Slave Lake Pulp mill in Slave Lake, Alberta, to Atlas
- Combined total cash proceeds from the sale are US$120 million
- West Fraser Timber Co. Ltd. last traded at C$95.74 per share
West Fraser Timber Co. Ltd. (TSX:WFG) signed a definitive agreement for the sale of two of its pulp mills to Atlas Holdings.
West Fraser is selling its Quesnel River Pulp mill in Quesnel, B.C., and its Slave Lake Pulp mill in Slave Lake, Alberta. to Atlas. Combined total cash proceeds from the sale are US$120 million.
Atlas owns and operates several pulp, paper and wood products businesses in Canada and the United States.
The agreement includes related woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel River pulp facility.
The Quesnel River and Slave Lake pulp mills will be operated by Millar Western Forest Products.
“We believe this transaction provides these two great assets and teams a strong strategic future while allowing West Fraser to focus our resources on our objective to be the premier wood-building products company in North America,” West Fraser’s president and CEO, Ray Ferris, said in a news release. “Atlas Holdings and Millar Western bring deep experience in the pulp sector, and we look forward to continuing to work together as a key fibre supplier to Quesnel River Pulp.”
Atlas and its affiliates own and operate 27 companies. Together, they operate in sectors such as automotive, building materials, capital equipment, construction services, food manufacturing and distribution, metals processing, packaging, paper, power generation, printing, pulp, supply chain management and wood products.
West Fraser Timber Co. Ltd. is a diversified wood products company with more than 60 facilities in Canada, the United States, the United Kingdom and Europe.
West Fraser Timber Co. Ltd. opened trading at C$95.74 per share and its stock was 0.13 per cent higher in early trading.
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