Caddo River Forest Products And Suwannee Lumber Co. Acquired

Recently it was announced that Conifex Timber Inc., a publicly-traded lumber and forestry company based in British Columbia, has acquired Caddo River Forest Products and Suwannee Lumber Co. The announcement was made by a private equity firm based in New York, Blue Wolf Capital Partners.

According to news reports, the deal is valued at more than $250 million and includes the purchase of the Suwannee sawmill in Cross City, FL along with the Caddo River sawmill located in Glenwood, AR. Caddo River Forest Products and Suwannee Lumber Co. reportedly underwent financial struggles caused by rising timber prices in the U.S. The Arkansas sawmill closed in 2011 and re-opened last year after investments in the plant were made by Blue Wolf to improve infrastructure and upgrade equipment.

Suwannee Lumber had faced an array of challenges at its Dixie County, FL location, one of the lowest income counties in the state as well as the least populated. An affiliate of Blue Wolf acquired a majority stake in the sawmill in 2013 when Blue Wolf decided to invest in the facility and make it more modern, also providing benefits for employees while working to resolve long-term environmental challenges. The Caddo facility in Arkansas closed in 2011 due to the financial crisis; located in Glenwood, a town with a population of only 2,500 at the time, the sawmill employed hundreds of area residents.

Conifex’s CEO and president Ken Shields said in a news release that as a result of the acquisition, the company’s total yearly production capacity had risen by about 50% to 1.1 billion board feet while the total annual U.S. production capacity in the southern region had risen by about 200% to 550 million board feet.

With the acquisition completed, two men have been appointed to the Conifex Board of Directors; Strategic Advisor to Blue Wolf George Judd, and Charles Miller of Blue Wolf.

Shields said employees at both facilities had played a vital role in helping both sawmills achieve success, and that the Conifex family welcomes the businesses and looks forward to helping both prosper in the coming years.

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