Western Forest Products to sell ownership interests in TFL 44 LP and Alberni Pacific Division Sawmill in Canada
March 18, 2020
CANADA (News release) -- Western Forest Products Inc. ("Western") and Huumiis Ventures Limited Partnership, a limited partnership beneficially owned by Huu-ay-aht First Nations, ("Huu-ay-aht"), have reached an agreement whereby Huumiis will acquire a majority ownership interest in TFL 44 Limited Partnership and an ownership interest in a newly formed limited partnership that will own the Alberni Pacific Division Sawmill for total consideration of $36.2 million.
"This agreement is an example of how collaboration between First Nations and the private sector can contribute to reconciliation," said Don Demens, Western's President and CEO.
"Western is committed to the long-term success of this partnership, and we look forward to continuing to work towards our shared goal of revitalization of a forest sector that benefits everyone in the Alberni Region."
The transaction is expected to close in the 2Q 2020. The agreement builds on the Reconciliation Protocol Agreement between Huu-ay-aht and Western signed in March 2018 and the TFL 44 LP transaction completed in March 2019. It is a positive step towards the furtherance of Huu-ay-aht's and Western's framework for reconciliation and revitalization of the Alberni region.
The framework includes economic opportunities for increased participation of the other 13 area First Nations through increased engagement, tenure ownership, employment and business opportunities, sustained domestic manufacturing, increased training, effective marketing and value-added product innovation, and strong environmental stewardship - all in a manner consistent with the British Columbia Declaration on the Rights of Indigenous Peoples Act.
Western is a premier supplier of high-value, specialty forest products. Western has a lumber capacity in excess of 1.1 billion board feet from eight sawmills and four remanufacturing facilities.
