On Mar. 9, CanWel Building Materials and Jemi Fibre Corp. announced they have entered a “definitive agreement” in which CanWel will acquire all of the issued shares of Jemi Fibre.
Jemi Fibre has roughly 136,000 acres of private timberlands, including land in the Elk Valley. Jemi Fibre’s equity value is estimated at $11 million. The purchase agreement with CanWel means that Jemi Fibre will become a subsidiary of CanWel, combining Jemi Fibre’s operations with CanWel’s platform.
The acquisition includes all 136,000 acres of timberlands, harvesting operations, multiple post peeling facilities, two specialty wood treatment plants and one saw mill. The agreement will also create Canada’s only vertically integrated building materials distribution company and was unanimously approved by the board of directors of both companies.
Mike Jenks, the CEO of Jemi Fibre, entered into a long-term agreement with CanWel, and will continue to lead Jemi Fibre as a subsidiary of CanWel.
“We are extremely pleased to be joining the CanWel organization to establish a more stable operating platform,” said Jenks in a press release. “Joining CanWel allows us to be part of a larger entity with deep and effective sales and distribution channels, operating expertise and a strong balance sheet. We have worked hard building a highly strategic, valuable and integrated collection of assets and look forward to continuing our company’s vision as part of CanWel.”
CanWel is a Vancouver-based business, founded in 1989. It’s gained a reputation for being one of Canada’s largest distributors of building materials and renovation products. They have a number of distribution centres across the country and in the United States.
So far, it is unclear if the transaction will alter production or operations in the Elk Valley. The Free Press has contacted representatives from both parties and will continue to follow the story.