SGF Rexfor has concluded a sale agreement for Les Produits forestiers Bellerive Ka’n’enda inc.
Mont-Laurier, March 12 2002 - Mr. Claude Blanchet, Chairman of the Board, President and Chief Executive Officer of the Société générale de financement du Québec (SGF) announces that SGF REXFOR, wholly‑owned subsidiary of SGF, has concluded an agreement to sell Les Produits forestiers Bellerive Ka’N’Enda inc. (PFBK) to a group of buyers formed of Lauzon inc. and les Bois Feuillus de la Lièvre inc.
PFBK, wholly‑owned subsidiary of SGF REXFOR INC., operates three hardwood manufacturing complexes: a sawmill, a veneer mill as well as a debarker and a chip mill. The mills are located in Mont‑Laurier and employ approximately two hundred people.
Lauzon inc. is a society which the principal activity is to produce and commercialize hardwood flooring. Les Bois Feuillus de la Lièvre is a company of hardwood transformation. These two companies are active in the regions of the Laurentides and of l’Outaouais.
The details of this transaction remain confidential but the objective is to finalize the sale by mid‑may, after the group of buyers have completed its due diligence process and set up their financing.
The group of buyers, represented by Mr. Yves Latour, and SGF REXFOR would like to point out that this transaction is done in a context of the development of the company. In fact, the agreement foresee that a sum of $3.5 M will be invested during the course of the next years in the area of manufacturing value added products from aspen veneer and also the production of wood components at the sawmill. These investments should create about one hundred jobs.
In order to insure the success of this project, the group of buyers are counting on the collaboration of the employees. In regards to the forestry activities and the supplying of goods and services, this group, says Mr. Latour, seeks to maintain the major part of the activities. The buyers want to preserve a healthy competition in the forest.
SGF REXFOR is a subsidiary of the Société générale de financement du Québec whose mission is to implement economic development projects in cooperation with partners under normal profit conditions. Since its restructuring in 1998, SGF has generated investments of approximately $7.5 billion and created over 19,400 direct and indirect jobs in projects cumulating in the operational phase, not to mention the thousands of jobs created during the construction phase. As of September 30th, 2001, SGF had consolidated assets of over $2.9 billion. SGF has 57 international partners with facilities in Quebec. (sgfqc.com)
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Communications and Public Relations
Les Bois Feuillus de la Lièvre inc.