International Forest Products Ltd. (IFP_A.TO) has agreed to buy Tolleson Ilim Lumber Co. based in Perry, Georgia from Ilim Timber Continental S.A. for a total consideration of $180 million.
The Tolleson operations include two sawmills in Perry and Preston, Georgia, with a combined annual lumber capacity of more than 400 million board feet and also a re-manufacturing facility in Perry, Georgia. In 2013, Tolleson generated adjusted EBITDA of $37 million on sales of $134 million.
The company expects the combination of both the companies to generate more than $5 million in annual synergies.
Interfor's consideration for the Tolleson business has been set at $129.9 million in cash and retained liabilities plus 3.68 million International Forest shares.
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