West Fraser Timber announced that the United States Federal Trade Commission has granted early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to West Fraser’s proposed acquisition of six sawmills and a finger-joint mill from the Howard Gilman Foundation and other shareholders.
According to the announcement, this ends antitrust review of the proposed transaction by the FTC and the United States Department of Justice, as required under the HSR Act. The transaction, which is subject to other customary conditions, is expected to close before eng of the third quarter of 2017.
The Gilman Companies are comprised of six sawmills and a finger-joint mill in Florida and Georgia as well as an administrative office in St. Marys, Georgia. After considering estimated tax benefits, the purchase price represents approximately six times trailing 12 months EBITDA of the acquired operations. In the 12 months ended June 30, 2017 the Gilman Companies generated EBITDA of USD 67 million on estimated sales of USD 330 million.
In 2Q2017 West Fraser increased Adjusted EBITDA margin to 23.1%.
About West Fraser Timber:
The company is an integrated wood products company producing lumber, wood chips, LVL, MDF, plywood, pulp and newsprint. The Company has operations in western Canada and the southern United States.