Canfor Corporation announced that it has entered into a letter of intent with Groupe Lebel Inc. to sell the Daaquam sawmill located in Saint-Just-de-Bretenières, Quebec. The transaction is expected to close at the end of March, 2014 and is subject to customary closing conditions, including the execution of a formal agreement. The Daaquam mill produced 120 million board feet of lumber in 2013.
Don Kayne, CEO of Canfor said, “Daaquam was sold because it was not core to our Western Canadian operations. Groupe Lebel is a well respected company and Daaquam is a good strategic fit for it. We wish Groupe Lebel and all the employees of the Daaquam mill good luck in the future.”
The proceeds of sale of the Daaquam sawmill and working capital combined with the sale of other associated properties related to Daaquam to other third parties are expected to amount to approximately $25 million.