Kilmer Group Completes Sale of Chaleur Forest Products
- December 1st, 2022
Dec 01, 2022, 09:00 ET
TORONTO, Dec. 1, 2022 /CNW/ – Kilmer Group announced today the completion of its sale to Interfor Corporation (“Interfor”) of 100% of the equity interests in the entities comprising Chaleur Forest Products (“Chaleur”). Chaleur owns two sawmill operations located in Belledune and Bathurst, New Brunswick. Chaleur is the second-largest producer of lumber in Atlantic Canada, with an aggregate annual lumber production capacity of 350 million board feet. Chaleur also operates a woodlands management division based out of Miramichi that manages 2.3 million acres of Crown forests (representing approximately 30% of total Crown forest land in New Brunswick).
Chaleur has been a pioneer in New Brunswick’s forestry industry since its Belledune sawmill first began operations in the early 1990s. Kilmer Group’s investment in Chaleur, which is held through Kilmer Forestry LP, began in March 2016, when it acquired Chaleur sawmills. In May 2018, Kilmer Forestry acquired Fornebu Lumber Company and in May 2020, Miramichi Lumber Products. Under Kilmer Forestry’s management, Chaleur invested more than $40 million in capital projects, allowing Chaleur to make meaningful improvements to its operations including mill automation, just-in-time equipment reporting, asset improvements and projects to improve environmental sustainability.
As part of the acquisition of Miramichi Lumber Products, Chaleur was able to add a third shift at the Bathurst sawmill, which provided much needed employment when the closure of the Belledune smelter in 2019 resulted in over 400 people losing their jobs.
Kilmer Forestry has been committed to sustainable forestry practices and meeting the needs of its customers and stakeholders through responsible management of public and private forests under its stewardship. The Bathurst sawmill is the focus of a current biomass boiler project, to be completed early in the new year, which will reduce the consumption of propane by 5,000,000 litres annually. Under Kilmer Forestry’s ownership, Chaleur promoted forest health, recognized multiple uses of the forest, complied with all environmental requirements, and continually improved practices to minimize the environmental footprint.
“I am very proud of the accomplishments Chaleur and Kilmer have achieved together, said Larry Tanenbaum, Chairman and CEO of Kilmer Group. “And the transaction with Interfor is a strong opportunity for Interfor to leverage New Brunswick’s competitive market and generate long-term benefits for shareholders, customers, and employees alike.”
Kilmer Group’s existing investments in New Brunswick will continue to operate, including Coca-Cola Canada Bottling Limited, Coca-Cola’s exclusive franchised bottling and distribution partner across Canada. Kilmer Group will also continue to pursue new investment opportunities in New Brunswick in addition to its existing philanthropic initiatives with Right To Play, an international non-profit organization which empowers vulnerable children to rise above adversity using the power of sports.
Said Duane Woods, a Chaleur founding partner and President of Chaleur during Kilmer Forestry’s ownership, “Chaleur is a high-quality business that will represent an exciting and complementary addition to Interfor. We are proud of our accomplishments to date which have been achieved through Kilmer’s commitment to the business, its leadership and vision, and through the hard work and dedication of our superb workforce. We are pleased to complete this transaction with Interfor and are confident in Chaleur’s future success.”
About Kilmer Group
Kilmer Group, is a Canadian company with substantial private equity, infrastructure & real estate and sports & media holdings. Kilmer Group’s long term, entrepreneurial and solutions driven approach to investment has translated into a history of operating successful businesses.
For more information about Kilmer Group, please visit www.kilmergroup.com
SOURCE Kilmer Group