TimberWest Forest Corp. to be sold
TimberWest Forest Corp., Western Canada’s largest private timber and land management company, has entered into a purchase agreement with two Canadian pension funds, British Columbia Investment Management Corp. and the Public Sector Pension Investment Board. The purchase price is C$1.03 billion in cash, including assumed debt.
Headquartered in Vancouver, TimberWest owns approximately 808,000 acres of private land and is in the business of selling timber products and real estate. It is traded on the Toronto Stock Exchange under the symbol "TWF.UN."
As part of the definitive agreement, TimberWest has a 60-day "go-shop" period during which it is permitted to solicit a superior proposal. If TimberWest is successful in soliciting a superior proposal during the go-shop period, there will be a break fee of approximately $18 million.
The transaction is subject to regulatory and court approval, as well as an approval vote by 66 2/3% of the unit (share) holders. In the absence of a superior proposal, the transaction is expected to close by the end of June 2011.
BMO Capital Markets acted as financial adviser to TimberWest and the special committee and will be managing the go-shop process on behalf of the company. UBS Securities Canada Inc. acted as independent valuator and financial adviser to the special committee.
Two firms sign exclusive deal for private-label glulam
EcoBlu Products, the developer of a water repellent technology called Red Shield, has signed an exclusive arrangement with Calvert Co. to produce and private label its current line of glulam beams.
The newly developed RedShield coating also features mold, wood rot, termite and fire protection, according to EcoBlu. Red Beam is currently shipping through wholesale channels throughout the United States, and Calvert Co. intends to introduce the glulam product into Japan, China and Korea, according to the announcement.
Founded in 1947, Calvert Co. is one of the oldest continuous glulam manufacturers in the United States, with two manufacturing plants in the Pacific Northwest, in Washougal and Vancouver, Washington.
Former Wolseley exec joins private equity group
Chip Hornsby, former president and CEO of Wolseley, has joined Advent International’s Operating Partner Program. Hornsby will advise Advent, a global investment and corporate buyout firm, on opportunities in the distribution and building products sector. Hornsby will principally work with Advent’s U.S. deal team, which is looking to invest up to $1 billion of equity capital, according to an Advent spokesperson.
Hornsby served as president and CEO of Wolseley, the former parent company of Stock Building Supply, from 2006 to 2009. Prior to that, Hornsby was the president and CEO of Ferguson Enterprises, Wolseley’s plumbing supply distribution business in North America. He drove sales expansion from $3 billion to $9 billion during his five-year tenure at Ferguson, where he began his career and worked for 27 years.
Hornsby serves on the board of directors for Goodman Global, a $2 billion manufacturer and distributor of HVAC equipment, and Univar Inc., a $7 billion chemicals distributor. He is the former chairman of the National Association of Wholesaler-Distributors.
Advent International has been an active investor in building products, distribution and construction supply for more than 20 years, and has invested in more than 20 companies in these sectors. Most recently, Advent purchased a majority share of Bradco Supply in 2008 and subsequently sold it to ABC Supply in 2010.