Tembec Sells Flooring Plant to Private Company
Montreal, Quebec, Canada, 25 November 2011 – Tembec today announced that the sale of its Toronto, Ontario, flooring plant assets and its Muskoka and Vintage brands with a private company has closed. Total consideration for the transaction is approximately CAD 13 million, which remains subject to closing working capital adjustments.
Tembec will also close the Huntsville, Ontario, hardwood flooring plant. This plant will cease operations in January 2012.
The sale of the Toronto plant and the shutdown of the Huntsville plant will result in a one-time charge of CAD 2 million, which 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 CAD 48 million, EBITDA of CAD 1.9 million and operating earnings of CAD 1.6 million.
The private company is part of Boa-Franc Inc., which is the North American leader in manufacturing prefinished hardwood floors. Boa-Franc is based in Saint-Georges de Beauce, Quebec.
Tembec is a large, diversified and integrated forest products company and a 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 at www.tembec.com.