West Fraser falls after deal to buy Lake Sawmills

West Fraser Timber Co

07/09/2023 16:36

** Shares of wood products firm West Fraser Timber  WFG.TO 
down 1.25% at C$97.08
    ** West Fraser to buy Spray Lake Sawmills located in
Cochrane, Alberta, for C$140 million ($102.42 million)
    ** "Acquisition enables West Fraser to grow its footprint in
Southern Alberta and expand its Canadian treated wood business,
while providing access to a high-quality timber supply" - WFG 
    ** Deal expected to close later this year
    ** Spray Lake Sawmills has an annual lumber capacity of 155
million board feet
    ** "We believe a variety of opportunities continue to exist
(like Spray) for the purchase of lumber assets on a value basis
(holistically as financials are lacking) and extract potential
advantages beyond consolidation alone" - Andrew Kuske, Credit
Suisse analyst
    ** West Fraser down 0.7% so far this year

($1 = 1.3669 Canadian dollars)

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
 ;))