West Fraser Timber Co. Limited has signed a definite agreement with Atlas Holdings to sell its 2 Canadian pulp mills for about USD 120 million. The British Columbia and Alberta based pulp mills will be operated by Millar Western Forest Products after sale completion.
Sep 22, 2023
West Fraser Timber Co. Limited has signed a definitive agreement with Atlas Holdings to sell its Quesnel River Pulp mill in Quesnel, British Columbia, and its Slave Lake Pulp mill in Slave Lake, Alberta. A combined cash proceed of USD 120 million are expected from the sale.
Upon closing of the transaction, the Quesnel River and Slave Lake pulp mills will be operated by Millar Western Forest Products, which joined the global Atlas family of manufacturing and distribution businesses in 2017. The agreement includes related woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel River Pulp facility. The transaction is anticipated to close following successful completion of customary regulatory reviews and satisfaction of customary closing conditions.
Mr. Ray Ferris, West Fraser’s President & CEO, said, “We believe this transaction provides these two great assets and teams a strong strategic future while allowing West Fraser to focus our resources on our objective to be the premier wood building products company in North America. Atlas Holdings and Millar Western bring deep experience in the pulp sector, and we look forward to continuing to work together as a key fibre supplier to Quesnel River Pulp.”
Mr. David Anderson, CEO of Millar Western, stated, “This transaction will provide the dedicated and skilled teams at Quesnel River and Slave Lake with a solid future. Our team intends to continue investing in these high-quality mills and we look forward to collectively strengthening our product offerings and value proposition to the global BCTMP marketplace.”
Mr. Neil Mahajan, Atlas Partner, shared, “Millar Western is highly respected as a leader in wood products in the region and beyond and we look forward to welcoming the Quesnel River and Slave Lake mills to the Atlas family of companies.”