International Forest Products to expand capacity by 20 per cent with U.S. deal

VANCOUVER – International Forest Products Ltd. (TSX:IFP.A) will acquire a Georgia lumber business in a US$180-million deal with Ilim Timber Continental SA. The Vancouver-based company says the acquisition of Ilim’s Tolleson lumber business of Perry, Ga., will increase Interfor’s annual lumber capacity by 20 per cent. Interfor will pay US$129.9 milion cash plus 3.68 million of its class A shares to acquire Tolleson, which has two saw mills and a manufacturing plant. They are about 75 miles from Interfor’s current operations in Georgia and the company foresees more than US$5 million of annual cost-savings through the deal.