@interfor.com
PORT ALBERNI – San Group has entered into a definitive agreement to buy Acorn Forest Products Ltd. in Delta, a wholly owned subsidiary of Interfor Corporation.
The deal, announced April 12, will see San Group to acquire all of the mill’s assets and hire all employees currently employed at the mill. The acquisition builds on San Group’s fully integrated value-added wood products processing methodology and positions the company’s Innovative Lumber Manufacturing Systems (“ILMS”) with the Mill’s production capabilities.
“Acorn’s complementary sawmilling technology, customer base, and geographic footprint make it an excellent fit with our value-added business model, and the transaction strengthens our global wood products export base,” says San Group Co-Owner Kamal Sanghera.
San Group initially expects to operate the mill’s primary and secondary processing lines as an independent business unit, consistent with Interfor’s current practice. San will also inherit the mill’s long-standing position as a specialty wood products provider for the Japanese market.
This acquisition will integrate Acorn’s production into San Group’s value-added manufacturing model which uses downstream processes to create wood products ready for distribution.
Acorn assets will complement San’s standard of maximizing the utilization of each log harvested, thereby reducing the impact on forests and the environment.
After the acquisition, San’s production capacity will exceed over 500 million board feet, making privately owned San the second largest sawmilling company in coastal BC.
“We expect Acorn Forest Products Ltd. to be an industry leader in wood products manufacturing, enhancing our position of producing some of the world’s the most carbon conscious environmentally friendly wood products, and to be well positioned for the transition towards higher levels of autonomy,” states Sanghera. “The acquisition is also consistent with our go-forward strategy to diversify and accelerate investment in high-growth areas.”