West Fraser Timber Co. (TSX,NYSE:WFG) has closed on a previously announced plan to acquire the Spray Lake sawmill in Cochrane, Alberta.
Earlier this year, West Fraser announced it would spend $140 million to acquire the sawmill, which produces treated wood products, dimensional lumber and a wood residuals and biproducts. West Fraser announced the deal closed today.
“Building on our operating footprint in Alberta, we see Spray Lake Sawmills as an ideal fit with our lumber and treated wood business,” Ray Ferris, West Fraser’s CEO, said in a press release.
“We are excited to welcome the experienced and dedicated team to the West Fraser family and working with the local community.”
The Spray Lake sawmill has an annual capacity of 155 million board feet of lumber and has two forest management agreements with the Alberta government with an annual allowable cut of 500,000 cubic metres.
West Fraser already owns half a dozen lumber and plywood mills in Alberta.