Interfor completes acquisition of Simpson Sawmills and issuance of common shares

On March 2, 2015, Interfor Corporation completed an acquisition of four sawmills from Simpson Lumber Company, LLC.

Interfor purchased the four mills for US$94.7 million plus working capital and contingent future payments. The purchase of the sawmills in Washington, Georgia and South Carolina are key to Interfor’s growth strategy and firmly establishes its presence in the US.

To partially finance the acquisition, the Company completed a bought deal public offering led by RBC Capital Markets and Raymond James and including BMO Capital Markets, CIBC World Markets, Scotia Capital and TD Securities of 3,300,000 subscription receipts for gross proceeds of $66,330,000. In connection with the completion of the acquisition, each subscription receipt has been automatically exchanged, for no additional consideration, for one common share of the Company.

Interfor is a growth-oriented lumber company with operations in Canada and the United States.

Interfor was represented by Marilyn Mauritz, General Counsel and Corporate Secretary to the Company. McCarthy Tétrault LLP advised Interfor in connection with the bought deal offering and certain other matters relating to the acquisition with a deal team consisting of Richard Balfour, Robin Mahood, Fleur Heck, Maureen Gillis and Liezl Behm.

Simpson Lumber Company, LLC was represented by Betsy Stauffer, Vice President and General Counsel, and Lane Powell PC, Seattle, WA, with Mike Dwyer as the lead on the transaction. Womble, Carlyle Sandridge & Rice LLP provided representation to Simpson on local issues in the US Southeast.

The underwriting syndicate was represented by Farris, Vaughan, Wills & Murphy LLP with a deal team consisting of Trevor Scott, Matthew Smith, Ron Dueck (tax), Arik Broadbent and Michael Rawluk.