Millar Western is selling off its lumber mills in Whitecourt and Fox Creek.
Millar Western Forest Products Ltd announced on Dec. 16 that they have entered into an agreement to sell their wood products assets to Canfor Corporation for $420 million, including $56 million of working capital.
This transaction includes their lumber mills in Whitecourt, Fox Creek, and the associated woodlands operations and timber holdings.
The transaction is expected to close in the first quarter of 2022.
Once the transaction is complete, Millar Western will continue to own and operate is bleached chemi-thermochemical pulp (BCTMP) mill in Whitecourt, while the wood products operations will continue to operate as a division of Canfor.
In a statement, David Anderson, President and Chief Executive Officer of Millar Western, says the lumber mill will be in good hands with Canfor.
“This transaction, with a company that shares our commitment to working safely, supporting healthy communities, and conducting responsible stewardship of forest resources, will provide great opportunities to the outstanding people in our wood products operations,” says Anderson.
Don Kayne, President and Chief Executive Officer of Canfor, is pleased with how Millar Western has been running things.
“Millar Western has an excellent reputation for its highly skilled employees, strong commitment to safety, efficient operations and exceptional products,” says Kayne. “These operations are well aligned with our strategy of growing and diversifying our global operating platform, and we look forward to welcoming them to the Canfor team.”
Millar Western’s wood products operations in Whitecourt employs 550 people and had a production capacity of 630 million board feet of lumber products.
