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Canfor Enters Into Phased Purchase Agreement With Scotch & Gulf Lumber

Canfor Corp. (CFP.TO) said Friday that it has entered into a phased purchase agreement with Scotch & Gulf Lumber, LLC.

Headquartered in Mobile, Alabama, Scotch Gulf's primary operations consist of three sawmills in Mobile, Fulton and Jackson, Alabama, producing Southern Pine dimension lumber products.

The deal involves the phased purchase by Canfor of Scotch Gulf over a three-year period, at an aggregate purchase price, excluding working capital, of $80 million. Canfor's initial 25% interest will increase over the three year period to 50% after 18 months and 100% at the end of the term.

The deal is expected to close in the third quarter of 2013.

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