Global forest products company to acquire bankrupt Canadian mass timber company

by arslan_ahmed | June 7, 2023 12:04 pm

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Global forest products company, Mercer International Inc. (Mercer), will acquire all the assets of Structurlam Mass Timber Corporation and its subsidiaries (Structurlam) for $81.1 million.

As part of the deal, Mercer will acquire Structurlam’s production facility in Conway, Arkansas (the Conway facility), and its production facilities in British Columbia.

Earlier this year, Structurlam, also headquartered in British Columbia, filed for bankruptcy and entered into a stalking horse agreement with Mercer. In this arrangement, a stalking horse is designated by a financially distressed company to submit the first bid for its assets.

The Conway facility is a modern, state-of-the-art manufacturing facility built in 2021. It has an annual capacity of approximately 75,000 m³ (2.6 million cf); and can produce both glued-laminated timber (glulam) and cross-laminated timber (CLT). It includes more than 26,000 m² (280,000 sf) of manufacturing space and is strategically located in the Southern U.S. in proximity to growing construction markets, with access to a large and high-quality regional wood basket.

The assets also include three facilities located in British Columbia with a combined annual capacity of approximately 40,000 m³ (1.4 million cf) of glulam and CLT.

The transaction will, among other things, add glulam production capability to Mercer’s existing mass timber offerings. The proposed acquisition will materially increase Mercer’s CLT capacity to approximately 210,000 m³ (7.4 million cf) and add 45,000 m³ (1.5 million cf) of glulam to its production capacity.

Juan Carlos Bueno, president and CEO stated: “The acquisition of the Structurlam assets is consistent with our strategy to expand and diversify our product mix in our solid wood segment and build out our existing mass timber business. The acquisition will materially increase our existing production capacity and cement our position as a leading producer of mass timber products. These assets complement our existing Mercer Mass Timber facility, located in Spokane Valley, Washington, and provide significant potential synergies on a combined basis. As glulam is commonly incorporated into mass timber construction projects that utilize CLT, the acquisition of Structurlam will enhance our ability to service the growing customer base for our mass timber business.”

Source URL: https://www.constructioncanada.net/global-forest-products-company-to-acquire-bankrupt-canadian-mass-timber-company/

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