- Western Forest Products (WEF) has announced that a wholly-owned subsidiary of Western has agreed to acquire assets of Calvert Company located in Washington State
- The acquisition is for consideration of US$12.0 million and includes an inventory of US$2.5 million, subject to a customary post-closing inventory adjustment
- Calvert is one of the oldest glulam manufactures in the U.S. and has more than 60 years of experience producing high-quality glulam beams in multiple species
- Mass timber construction, which utilizes products such as glulam and cross-laminated timber, represents a significant growth opportunity in North America
- Western is an integrated forest products company, building a margin-focused log and lumber business to compete successfully in global softwood markets
- Western Forest Products Inc. opened trading at C$1.45
Western Forest Products (WEF) has announced that a subsidiary of Western has agreed to acquire assets of Calvert Company, located in Washington State.
The US$12.0 million acquisition includes an inventory of US$2.5 million, subject to a customary post-closing inventory adjustment.
With over 60 years of experience producing beams for industrial, commercial and residential projects worldwide, Calvert is one of the oldest glulam manufacturers in the U.S.
“This acquisition will help position Western to capitalize on the growing North American mass timber building market and is consistent with our strategy of moving up the product value chain and growing our portfolio of value added products,” stated Don Demens, Western’s President and CEO.
“We look forward to working with Calvert’s owner, Doug Calvert, who will be remaining with Western following the closing of the transaction in a consulting capacity,” he added.
Mass timber construction, which utilizes products such as glulam and cross-laminated timber, represents a significant growth opportunity in North America.
There are currently over 1,300 mass timber projects constructed, in progress or in the design phase in North America and third-party research estimates 4.4 billion board feet of lumber demand from mass timber construction by 2035.
In addition, Mass Timber is a natural, renewable, and sustainable building material, with a lighter carbon footprint than other construction materials.
The transaction will be financed with cash on hand, and is expected to close in the third quarter of 2022.
Western is an integrated forest products company, building a margin-focused log and lumber business to compete successfully in global softwood markets.
Western Forest Products Inc. opened trading at C$1.45 per share.
