Western Forest Products acquiring Calvert assets

Western Forest Products Inc., the subsidiary of Western, has entered into an agreement to acquire certain assets of Calvert Company, Inc. located in Washington State

The $12 million deal includes an inventory of $2.5 million, subject to a customary post-closing inventory adjustment.

Calvert is one of the oldest U.S. glulam manufacturers and has more than 60 years of experience producing high-quality glulam beams in multiple species, including Douglas fir, southern yellow pine and yellow cedar, for industrial, commercial, and residential projects.

With manufacturing facilities in Washougal and Vancouver, Wash., Calvert has a combined annual glulam capacity of approximately 35 million board feet on a two-shift basis.

Calvert’s operations employ approximately 60 employees and produced approximately 13 million board feet of glulam in 2021 on a single shift basis. 

“We are excited to welcome Calvert’s employees to Western,” said Don Demens, president and CEO of Western. “This acquisition will help position Western to capitalize on the growing North American Mass Timber building market and is consistent with our strategy of moving up the product value chain and growing our portfolio of value-added products.”

Calvert’s owner, Doug Calvert, will remain with Western following the closing of the transaction in a consulting capacity. 

“Doug’s strong relationships and expertise in glulam will be invaluable as we look to further grow the business,” said Demens. 

Mass Timber construction, which utilizes products such as glulam and cross-laminated timber, represents a significant growth opportunity in North America, Western said while noting There are currently over 1,300 Mass Timber projects constructed, in progress, or in the design phase in North America and third party research estimates 4.4 billion board feet of lumber demand from Mass Timber construction by 2035. 

The transaction will be financed with cash on hand, and is expected to close in the third quarter of 2022. 

Western is an integrated forest products company building a margin-focused log and lumber business to compete successfully in global softwood markets. 

With operations and employees located primarily on the coast of British Columbia and Washington State, Western has a lumber capacity in excess of 1 billion board feet from 7 sawmills and four remanufacturing facilities. The company sources timber from its private lands, long-term licenses, First Nations arrangements, and market purchases.