Canfor acquires El Dorado lumber facility for $73 million

Canfor Corporation has entered into a purchase agreement with Resolute El Dorado Inc., an affiliate of Domtar Corporation, to acquire its El Dorado lumber manufacturing facility in Union County, Ark. The facility produces dimensional lumber and specialty wood products.

According to a company release, the transaction is a $73 million acquisition. Canfor said it plans to invest $50 million in planned upgrades. Production capacity is expected to increase to 175 million board feet per year.

“The El Dorado mill is an important part of the regional forest ecosystem. Together with Canfor’s adjacent El Dorado Laminating Plant and nearby Urbana Plant, this acquisition aligns with our growth-focused strategy in areas with access to high-quality globally competitive timber supply,” said Lee Goodloe, President of Canfor Southern Pine. “The talented team at the mill is one of the many reasons that we pursued this opportunity, and we look forward to welcoming them to the Canfor team.”

The history of Canfor’s operations in Arkansas date back to 1916 through a legacy of operations which began with the Anthony Forest Products Company, acquired by Canfor in 2015.

“We look forward to continued success in Union County as we expand on our local engagement and strengthen our relationships with the community, and all of the El Dorado mill’s valued partners, customers and suppliers,” added Goodloe.

The transaction is expected to close over the next several months and is subject to customary closing conditions.

Canfor is based in Vancouver, British Columbia, and is publicly traded. The company in 2023 had total revenue (Canadian currency) of C$5.426 billion, below the C$7.426 billion. The company posted a loss of C$348.5 million in 2023 compared with net income of C$861.1 million in 2022.

As of Dec. 31, 2023, Canfor employed 7,580 people, and had more than 50 facilities in Canada, the United States, and Europe.