Mercer International in Vancouver is acquiring all the assets of Structurlam and its subsidiaries for $81.1 million.
In April, Structurlam, headquartered in British Columbia, filed for bankruptcy and entered into a purchase agreement to sell all of its assets in B.C. and Arkansas.
As part of the deal, Mercer will acquire Structurlam’s production facility in Conway, Arkansas (the Conway facility), and its production facilities in British Columbia.
The Conway facility is a modern, state-of-the-art manufacturing facility built in 2021. It has an annual capacity of approximately 75,000 m3 (2.6 million cf); and can produce both glued-laminated timber (glulam) and cross-laminated timber (CLT).
The assets also include three facilities located in British Columbia with a combined annual capacity of approximately 40,000 m3 (1.4 million cf) of glulam and CLT.
The transaction will, among other things, add glulam production capability to Mercer’s existing mass timber offerings. The proposed acquisition will materially increase Mercer’s CLT capacity to approximately 210,000 m3 (7.4 million cf) and add 45,000 m3 (1.5 million cf) of glulam to its production capacity.
“The acquisition of the Structurlam assets is consistent with our strategy to expand and diversify our product mix in our solid wood segment and build out our existing mass timber business. The acquisition will materially increase our existing production capacity and cement our position as a leading producer of mass timber products. These assets complement our existing Mercer Mass Timber facility, located in Spokane Valley, Washington, and provide significant potential synergies on a combined basis,” said Juan Carlos Bueno, Mercer president and CEO. “We look forward to completing the acquisition and continuing to grow our contribution to a circular carbon economy, providing sustainable and carbon reducing alternatives through our innovative forest products.”
Structurlam has been a leader of the mass timber wood building boom, especially in British Columba. British Columbia government initiatives have supported the construction of mass timber buildings including the use of Structurlam products for building the 18-story Brock Commons at the University of British Columbia.
