Stack of framing lumber
Craig Webb

Canadian lumber producer Interfor acquired EACOM Timber Corporation, a deal that the company projects will increase its annual production capacity by 25%. Interfor is paying 490 million Canadian dollars (US$386 million) to acquire 100% of the equity interests of EACOM.

EACOM, a lumber producer in eastern Canada, has operations across Ontario and Quebec, including seven sawmills with a combined annual spruce-pine-fir (SPF) lumber production capacity of 985 million board feet, an I-Joist plant with annual production capacity of 70 million linear feet, a value-added remanufacturing plant with annual production capacity of 60 million board feet, and office in Montreal. EACOM’s operations also includes the rights to access 3.6 million cubic meters per year of responsibly managed and internationally-certified fibre supply.

“This transaction makes Interfor a truly North American lumber producer, with operations in all the key fiber regions on the continent, further diversifying and de-risking our operating platform and enhancing our growth potential and opportunity set,” Ian Fillinger, president and CEO of Interfor, said in a news release. “This transformational growth secures a desirable SPF product mix to meet the growing demand for our customers, at a time when SPF fiber supply is under increasing pressure in other jurisdictions in North America and around the world.”

On a pro-forma basis, Interfor’s total annual lumber production capacity will increase to 4.9 billion board feet, of which 46% will be in the U.S. South, 16% in the U.S. Northwest, 20% in eastern Canada, and 18% in British Columbia.

Interfor said the addition of the EACOM business will also provide an expanded opportunity set for potential future lumber-focused growth in eastern Canada. The business will operate under the Interfor banner, but Interfor said it will maintain all of EACOM’s key operating leadership and employees as well as its office in Montreal, Quebec.

“This transaction will allow our team to write its next chapter as part of one of North America’s best lumber companies,” Kevin Edgson, president and CEO of EACOM, said in a news release. “Interfor’s operational excellence, financial strength, customer relationships, and North American-wide portfolio will provide substantial opportunities to our people and our stakeholders. Our companies have shared values, including a commitment to safety and environmental responsibility and we are thrilled to be a part of Interfor’s continuing growth ambitions.”

The acquisition is expected to close in the first half of 2022.