Penticton-based Structurlam, which filed for bankruptcy protection in the U.S. this spring, has been sold for more than $80 million U.S. to Mercer International.
Image Credit: TWITTER/Structurlam
June 20, 2023 - 12:00 PM
Penticton-based Structurlam, which filed for bankruptcy protection in the U.S. this spring, has been sold for more than $80 million U.S. to Mercer International.
Mercer is a global forest products company with operations in Canada, the US and Germany.
“Mercer Mass Timber will immediately take possession and continue the operation of Structurlam’s manufacturing facilities, which will now operate under the ‘Mercer Mass Timber’ brand, including a production facility located in Conway, Arkansas and in Penticton, BC,” the company said in a news release issued last week.
It did not say what it paid for Structurlam but in an earlier release it said it had received bankruptcy court approval to buy the company for $81.1 million U.S.
Some sources, such as Bloomberg and Canadian Manufacturing, put the price at $83.5 million. The Bloomberg article does not explain why it used the $83.5 million figure.
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Structurlam started 60 years ago and has built mass timber structures throughout Canada and internationally, including The Cove Lakeside Resort in West Kelowna, an addition to the Penticton Lakeside Resort and the 18-storey Brock Commons at UBC in Vancouver.
Structurlam opened its plant in Conway, Arkansas in 2021 in order to build a Walmart headquarters campus but that contract was cancelled. Walmart was the plant’s only customer so the new plant was closed in January.
In April, Structurlam filed for Chapter 11 bankruptcy protection and entered into a “stalking horse” asset purchase agreement with Mercer for $60 million U.S.
Under the bankruptcy proceedings, other companies were able to bid for Structurlam at auction so the purchase price rose to the court-approved $81.1 million.
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