Brink Forest Products Ltd. said Thursday it has entered into an agreement with the BID Group of Companies to purchase Vanderhoof Specialty Wood Products Ltd.
"The acquisition of VSWP makes Brink the largest remanufacturer and finger-joint producer in Canada," owner John Brink said in a statement. "It will also provide added purchasing power in the constant pursuit of finding suitable fibre and low grade lumber for our operations."
The purchase will increase the number of facilities it owns to three. It operates Brink Forest Products Ltd. in Prince George and Pleasant Valley Remanufacturing Ltd. in Houston.
As well, it has added two new finger jointing lines at its Prince George facility in the past decade and is planning further expansion at its Houston operation.
"We have embarked on this aggressive growth strategy in response to our customer's growing need for quality lumber products and the increasing consolidation of the lumber industry in British Columbia and throughout North America," Brink said.
No major changes are planned for staff or management at VSWP.
VSWP started operations in the secondary manufacturing industry in 1991 with a small group of employees, gradually expanding over the years, adding finger-jointing in the mid-nineties and then a pellet plant after it was purchased by Bid Group in 2010.
Primarily in the sawmill construction business, Bid Group was looking for a buyer whose core business is lumber manufacturing, according to the statement.
"I have known John Brink and his companies for many years and they are a perfect fit for the long-term sustainability and growth in Vanderhoof," said BID Group chairman and managing director Brian Fehr.
In February, BID Group landed an $80-million contract to build a sawmill in Mississippi and credited expansion into the southern United States for getting the work.
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