Canfor announced that it has entered into an agreement to acquire the I-joist business of PinkWood for $68 million, including working capital. The transaction further diversifies Canfor’s operations and strengthens its engineered wood products portfolio in Western Canada.
Founded in 2009, PinkWood operates the largest I-joist manufacturing facility in Western Canada. Located in Calgary, Alberta, the company employs approximately 120 people and has production capacity of 46 million linear feet. PinkWood supplies engineered wood joists used in residential, multifamily, and commercial construction projects.
The purchase price represents a five-times EBITDA multiple based on current production levels and earnings, including identified synergies. Of the total consideration, $55 million will be paid upon closing, while the remaining $13 million will be paid over a five-year period.
Canfor noted that recent capital investments at PinkWood provide opportunities for additional growth and EBITDA expansion. Following the transaction, PinkWood will retain its existing name and operate as a wholly owned subsidiary of Canfor.
The acquisition is expected to be financed through cash and available liquidity. The deal is anticipated to close during the third quarter of 2026, subject to customary closing conditions.
Headquartered in Vancouver, British Columbia, Canfor operates more than 50 facilities across Canada, the United States, and Europe, producing lumber, engineered wood products, pulp and paper, wood pellets, and green energy products.
KEY QUOTE:
“PinkWood is a leading manufacturer of high-quality I-joists with a strong management team and stable returns. Canfor’s acquisition of PinkWood complements our operations in Western Canada by enhancing product diversification and supporting the continued expansion of our value-added manufacturing capabilities. We are pleased to welcome the PinkWood team and believe this acquisition will strengthen our existing asset base and create opportunities for growth and value creation.”
Susan Yurkovich, President And CEO, Canfor
