Western Forest Products to acquire Calvert Company

CANADA (News release) - Western Forest Products Inc. ("Western") announced that a wholly owned subsidiary of Western has entered into an agreement to acquire certain assets of Calvert Company, Inc. (collectively "Calvert") located in Washington State for consideration of $12 million, including inventory of $2.5 million, subject to a customary post-closing inventory adjustment.

Calvert is one of the oldest glulam manufacturers in the U.S. and has more than 60 years of experience producing high quality glulam beams in multiple species, including Douglas fir, southern yellow pine and yellow cedar, for industrial, commercial and residential projects around the world. Calvert has manufacturing facilities in Washougal, Washington and Vancouver, Washington with a combined annual glulam capacity of approximately 35 million board feet on a two shift basis. Calvert's operations employ approximately 60 employees and produced approximately 13 million board feet of glulam in 2021 on a single shift basis.

Mass Timber construction, which utilizes products such as glulam and cross laminated timber, represents a significant growth opportunity in North America. There are currently over 1,300 Mass Timber projects constructed, in progress or in the design phase in North America and third party research estimates 4.4 billion board feet of lumber demand from Mass Timber construction by 2035. In addition, Mass Timber is a natural, renewable, and sustainable building material, with a lighter carbon footprint than other construction materials.

The transaction will be financed with cash on hand, and is expected to close in the 3Q 2022. Completion of the transaction is subject to satisfaction of customary closing conditions. As part of the transaction, Western has created a new engineered wood subsidiary which will remain focused on further growth opportunities throughout the entire Mass Timber value chain.

Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets.

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