MONTREAL, Nov. 21, 2011 /CNW Telbec/ - Tembec has reached an agreement
with a private company to sell its Toronto (Ontario) flooring plant
assets along with its Muskoka and Vintage brands. The closing of this
transaction is expected to take place within the next few weeks.
Tembec will also close the Huntsville (Ontario) hardwood flooring plant,
impacting 63 people. This plant will cease operations in January 2012.
Management has met with employees to inform them of the Company's
The selling price related to the transaction is $13 million. The sale of
the Toronto plant and the shutdown of the Huntsville plant will result
in a one-time charge of $2 million that will be recorded in the
Company's December 2011 quarterly financial results. During the last
12-month period, the Toronto and Huntsville flooring plants generated
sales of $48 million, EBITDA of $1.9 million and operating earnings of
"The sale of the hardwood flooring division is consistent with our
strategy to focus on the Company's core businesses," stated Tembec
President and Chief Executive Officer James Lopez.
The Tembec hardwood sawmill operations located in Huntsville are
unaffected by this transaction.
Tembec is a large, diversified and integrated forest products company
which stands as the global leader in sustainable forest management
practices. The Company's principal operations are located in Canada and
France. Tembec's common shares are listed on the Toronto Stock Exchange
under the symbol TMB and warrants under TMB.WT. Additional information
on Tembec is available on its website at www.tembec.com.
This press release includes "forward-looking statements" within the
meaning of securities laws. Such statements relate, without limitation,
to the Company's or management's objectives, projections, estimates,
expectations or predictions of the future and can be identified by
words such as "may", "will", "could", "anticipate", "estimate",
"expect" and "project", the negative or variation thereof, and
expressions of similar nature. Forward looking statements are based on
certain assumptions and analyses made by the Company in light of its
experience, information available to it and its perception of future
developments. Such statements are subject to a number of risks and
uncertainties, including, but not limited to, changes in foreign
exchange rates, product selling prices, raw material and operating
costs and other factors identified in our periodic filings with
securities regulatory authorities. Many of these risks are beyond the
control of the Company and, therefore, may cause actual actions or
results to materially differ from those expressed or implied herein.
The forward-looking statements contained herein reflect the Company's
expectations as of the date hereof and are subject to change after such
date. The Company disclaims any intention to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable securities
For further information:
Vice President, Communications and Public Affairs
Tel.: 416 775-2819