Itochu Corp., the Tokyo-based general trading company that previously owned PrimeSource Building Products, entered a deal to acquire a forest products company.
Itochu Corp. and Itochu International agreed with E.R. Probyn, a Canadian corporation and Welco Lumber Company in the U.S. to acquire Alta Forest Products from Probyn and Welco.
Alta is described in the announcement as the largest wood fence board manufacturer in North America, producing 360 million board feet annually in its four (4) manufacturing plants located in the Pacific Northwest of the United States. Alta has established a leading position in the market for Western Red Cedar fence boards, a premium product, through – in the words of the announcement – “outstanding production efficiency driven by its specialized manufacturing process.”
Itochu Group is no stranger to the North American fence distribution industry through Itochu International’s ownership of Master-Halco, which operates five chain-link-fence manufacturing plants and 53 distribution centers in North America.
Through this acquisition, Itochu says it intends to strengthen its fencing business in North America further, capitalizing on the expected synergies between Alta’s leading wood fencing supply position and Master-Halco’s leading sales and distribution network.
Itochu sold PrimeSource in 2015.