Mercer International Inc. Receives Court Sales Order Approval to Acquire Structurlam Mass Timber Assets
May 30 2023 - 5:01PM
Mercer International Inc. ("Mercer" or the "Company") (Nasdaq:
MERC) today announced that it has received applicable Bankruptcy
Court approval of a sales order approving the acquisition of
substantially all of the assets of Structurlam Mass Timber
Corporation and its subsidiaries ("Structurlam"), including a
production facility located in Conway, Arkansas (the "Conway
Facility") and production facilities in British Columbia, Canada,
for $81.1 million, exclusive of a break fee and expense
reimbursement, subject to customary adjustments. The transaction is
subject to customary conditions and is expected to be completed
shortly.
The Conway Facility
The Conway facility is a modern,
state-of-the-art manufacturing facility that was built in 2021
and:
- has an annual
capacity of approximately 75,000 m3;
- can produce both
glued laminated timber (glulam) and cross-laminated timber
(CLT);
- includes over
280,000 square feet of manufacturing space; and
- is strategically
located in the Southern United States in proximity to growing
construction markets and with access to a large and high-quality
regional wood basket.
British Columbia Facilities
The assets also include three facilities located
in British Columbia, Canada with a combined annual capacity of
approximately 40,000 m3 of glulam and CLT.
Glulam
The transaction will, among other things, add
glulam production capability to Mercer's existing mass timber
offering. Glulam is a stress-rated, engineered wood product
comprised of wood laminations that are bonded together. It is
commonly used for support structures such as columns, beams, floor
joists, and trusses and offers a high degree of customization and
pre-fabrication. With a high strength-to-weight ratio, it offers
increased efficiencies in logistics and a smaller carbon footprint
relative to common construction materials such as steel and
concrete.
Juan Carlos Bueno, President and Chief Executive
Officer, stated: "The acquisition of the Structurlam assets is
consistent with our strategy to expand and diversify our product
mix in our solid wood segment and build out our existing mass
timber business. The acquisition will materially increase our
existing production capacity and cement our position as a leading
producer of mass timber products.
"These assets complement our existing Mercer
Mass Timber facility, located in Spokane Valley, Washington and
provide significant potential synergies on a combined basis. As
glulam is commonly incorporated into mass timber construction
projects that utilize CLT, the acquisition of Structurlam will
enhance our ability to service the growing customer base for our
mass timber business."
He concluded: "Our Mercer Mass Timber facility
and the Conway facility are two of the most modern mass timber
facilities in North America, which we believe will position us well
to capitalize on the growing market share of CLT and glulam in the
North American construction business. We look forward to completing
the acquisition and continuing to grow our contribution to a
circular carbon economy, providing sustainable and carbon reducing
alternatives through our innovative forest products."
Mercer International Inc. is a global forest
products company with operations in Germany, the USA and Canada
with consolidated annual production capacity of 2.3 million tonnes
of pulp, 960 million board feet of lumber, 140 thousand cubic
meters of cross-laminated timber, 17 million pallets and 150,000
metric tonnes of wood pellets. To obtain further information on the
company, please visit its web site at
https://www.mercerint.com.
The preceding includes forward looking
statements which involve known and unknown risks and uncertainties,
including statements concerning the expected completion of the
acquisition of the Structurlam assets and the benefits thereof.
Words such as "expects", "anticipates", "are optimistic that",
"projects", "intends", "designed", "will", "believes", "estimates",
"may", "could" and variations of such words and similar expressions
are intended to identify such forward-looking statements. Actual
results and outcomes may differ materially from what is expressed
or forecasted in these forward-looking statements. Among those
factors which could cause actual results to differ materially are
the following: any inability to satisfy the conditions to
completion of the proposed acquisition or to successfully integrate
the acquired assets, the highly cyclical nature of our business,
raw material costs, our level of indebtedness, competition, foreign
exchange and interest rate fluctuations, our use of derivatives,
expenditures for capital projects, environmental regulation and
compliance, disruptions to our production, market conditions and
other risk factors listed from time to time in our SEC reports.
APPROVED BY:
Jimmy S.H. Lee
Executive Chairman
(604) 684-1099
Juan Carlos Bueno
Chief Executive Officer
(604) 684-1099
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