MONTREAL, March 23, 2012 /CNW Telbec/ - Tembec Inc. ("Tembec") (TSX: TMB) announced today the closing of the sale of its British Columbia Southern Interior wood products assets to Canfor Corporation ("Canfor"). Canfor purchased Tembec's Elko and Canal Flats sawmills and the associated Crown tenures which consist of approximately 1.1 million cubic meters of combined Crown, private land and contract annual allowable cut. Total consideration for the transaction is approximately $65 million, subject to closing working capital adjustments. The transaction also includes a long-term agreement to provide residual fiber supply for Tembec's NBSK pulp mill located in Skookumchuck, British Columbia. As a result of the sale, Tembec will record a gain of approximately $25 million in its financial results for the quarter ending March 2012.
Tembec intends to use the cash proceeds to pay down revolving operating debt and for general corporate purposes.
Tembec is a manufacturer of forest products - lumber, pulp, paper and specialty cellulose - and a global leader in sustainable forest management practices. Principal operations are in Canada and France. With annual sales of approximately $2 billion, Tembec has 4,000 employees and is listed on the TSX (TMB).
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 legislation.
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