CanWel Building Materials Group Ltd. and Jemi Fibre Corp. have entered into a definitive agreement whereby CanWel will acquire all of the issued and outstanding common shares of Jemi Fibre.
The implied equity value of Jemi is approximately CA$11 million. CanWel also expects to assume total indebtedness of approximately CA$25 million and refinance approximately CA$50 million of Jemi Fibre’s senior loans.
The transaction will result in Jemi Fibre becoming a wholly-owned subsidiary of CanWel and will combine Jemi Fibre’s operations with CanWel’s well-established Canadian platform.
Jemi Fibre is a vertically-integrated forest products company that operates primarily in British Columbia and Saskatchewan. Jemi Fibre owns approximately 136,000 acres of private timberlands, strategic crown licenses and tenures, log harvesting and trucking operations, several post and pole peeling facilities, two pressure-treated specialty wood production plants, and one specialty sawmill.
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