By Julia A. Klassen, CNN • Updated 23rd April 2015
The latest $490-million acquisition deal from Interfor has seen its NAPA Logistics arm buy up processing equipment manufacturer Eacom in Canada.
Eacom is a facility that turns wood products into paper products and fibreglass products and its NAPA Logistics division says it will use Eacom to expand its footprint in the Canadian market.
Interfor said in a press release Tuesday it would pay C$235 million ($170 million) for the Eacom business, and C$98 million ($75 million) in estimated future earnings.
The deal will see all Eacom’s facilities in Quebec, Canada, and St. John’s, Newfoundland, both of which will be consolidated into the NAPA Logistics division, among others.
It will include a 600,000-square-foot facility in Quebec.
“This is a significant milestone in our growth strategy for NAPA Logistics and further strengthens our ability to deliver the products customers need for production and for export,” said Mike Boucher, head of Interfor’s rail, truck and freight businesses.
“This strategic business combination will have a strong financial and operating profile for our shareholders, and aligns with our long-term outlook,” Boucher said.