Structurlam Closes US$83.5 Million Sale to Mercer
PENTICTON, British Columbia, June 15, 2023 (GLOBE NEWSWIRE) -- Structurlam Mass Timber Corporation (the “Company”), the leading mass timber manufacturer in North America, announced today it has closed on the sale of substantially all its assets to Mercer International Inc. (“Mercer”) for US$83.5 million.
The Company had previously announced in April it had entered into a stalking horse asset purchase agreement (“Stalking Horse APA”) with Mercer for US$60 million in connection with the Company filing for chapter 11.
The Stalking Horse APA was subject to higher and otherwise better bids as part of a chapter 11 auction which was conducted on May 23, 2023. After several rounds of bidding, the Company declared Mercer’s revised US$83.5 million bid to be the winner and received U.S. court approval of the sale during the sale hearing conducted as part of the Chapter 11 proceedings. The Company also received sale approval from the Supreme Court of British Columbia on June 1, 2023.
“This is as successful an outcome as any one of our stakeholders could have hoped for. A lot of hard work by many people was required to get us through a very difficult period for the Company, so this is indeed a very special moment. I wish Mercer and all our employees the very best as they go forward,” said Matthew Karmel, CEO of Structurlam Mass Timber Corporation.
Structurlam was advised by Stifel and Miller Buckfire as its investment banker and Alvarez & Marsal served as its financial advisor. Chipman Brown Cicero & Cole, Paul Hastings and Gowling WLG served as legal counsel.
Stakeholders can receive additional information by contacting the Company’s Claim Agent, KCC at www.kcclc.net/Structurlam or calling: (888) 647-1715 (U.S./Canada) or (310) 751-2619 (International).
*About Structurlam Mass Timber Corporation *
Structurlam is the leading North American provider of mass timber solutions for construction and industrial markets in Canada and the U.S. Its structural laminated mass timber and industrial products include CrossLam® CLT cross-laminated panels, and GlulamPLUS® glue-laminated columns and beams. Structurlam is also the first producer in North America to introduce CLT in the production of industrial ground protection matting products. Structurlam’s entire product line is built from North American sustainably harvested softwood lumber, ensuring consistent product and environmental standards. Structurlam collaborates with architects, engineers and industrial OEM customers to create fully integrated solutions that combine design, engineering, a customized project delivery experience. Established in 1962, Structurlam’s world-class reputation is built on innovation, cost-efficiency and quality. Structurlam is based in Penticton, British Columbia and has mass timber production facilities in Canada and the U.S. For more information, visit http://structurlam.com