December 22, 2014 · Exit133

Simpson Lumber Sells Mill Operations & Tacoma Headquarters

Simpson Lumber has a deal to sell off four sawmill operations and its Tacoma headquarters. Simpson will sell the business and assets of its four sawmill operations in Tacoma and Longview, Washington; as well as two East Coast mills to Vancouver, B.C.-based Interfor Corporation.

From the sound of it, Interfor intends to continue operations at the mills, although the Simpson press release doesn't explicitly say so. Here's the full Simpson press release:

Simpson Lumber Company, LLC Announces Sale Of Mill Operations

Interfor will acquire company businesses, assets

TACOMA, Wash. — Simpson Lumber Company, LLC and Interfor Corporation have agreed to terms for Interfor to acquire the business and assets of four Simpson sawmill operations. Interfor will acquire Simpson Lumber’s mills in Tacoma and Longview, Washington; Meldrim, Georgia; and Georgetown, South Carolina. The Simpson Lumber headquarters building in Tacoma, Washington will also be part of the sale.

“This is exciting news for our employees and the communities in which we operate. Interfor is a company with a growth strategy focusing on manufacturing excellence,” said Allan Trinkwald, president, Simpson Lumber Company, LLC. “A leading forest product company, Interfor has made long-term commitment to the industry and after this transaction will be one of the largest lumber producers in the world.”

Simpson Lumber operations in the Shelton, Washington area are not part of the proposed sale to Interfor. Simpson will continue its strategic review of the Shelton operations and explore all options, which include long-term operations or a potential sale.

Simpson will continue to own the ongoing Simpson Door Company operations.

Based in Vancouver, Canada, Interfor is of one of North America's top softwood lumber manufacturing companies. The company operates sawmills in the United States and Canada.

“This transaction is another important milestone for Interfor,” said Duncan Davies, Interfor’s president and CEO. “The Simpson operations are a great strategic fit with our platforms in the Southeast and Pacific Northwest, with significant operational and financial upside.”

The transaction is subject to customary closing conditions and regulatory approvals. It is anticipated that the sale will be completed in the first quarter of 2015.

Simpson Lumber currently has 810 employees. Leaders of Simpson Lumber and Interfor are committed to making a smooth transition to the new ownership for both the long- and short-term good of employees, customers, and the communities.

According to the Interfor press release, the deal comes with a price tag in the neighborhood of $94.7 million, and will increase the Canadian company's operations by 30%, with "Significant operational improvement potential."

This comes less than a year after Simpson's announcement last March that it would sell its paper mill operations to Georgia-based RockTenn. Simpson will continue its lumber operations in Shelton, but the company will continue its strategic review of long-term operations, which does not preclude a future sale. Simpson Door Company operations will also continue.

Filed under: Tacoma Business, Port of Tacoma

4 comments

joe-nate December 30, 2014

Simpson prided itself as a local owner, a steward of Tacoma community interests. With the sales of the pulp mill and sawmill, both rising on the historic foundations of the one-time huge St. Paul and Tacoma Lumber Company of the late 1880s, distant corporate entities will now manage their fate. The nameless owners who sold Simpson's Tacoma assets will certainly realize a profit but one wonders if they will reinvest some those resources in private-led economic renewal for Tacoma--perhaps a leader of that firm, Ray Tennison, can convince his selling bosses that Tacoma deserves such renewed investments. Simpson split into two corporate entities several years ago, with its Green Diamond land-holdings firm remaining based in Seattle. Today, Simpson's loss in Tacoma hurts because of its genuine past commitment to the city's betterment in the past two-plus decades. The clean-up at the pulp mill is a prime example. Years ago, as St. Regis Paper, the mill's public relations flack routinely claimed all the factory there produced was steam. Upon his retirement, he whispered to a reporter "it ain't all steam." In contrast, Simpson has worked hard and spent money to address that former civic stink. As for the future, one hopes the legacy of Simpson endures: environmentally-responsible operations and sustainable good family-wage level local jobs.
talus December 31, 2014

The site of that pulp mill is increasingly inappropriate for even the best run, least stinky and polluting facility to operate. I would be surprised if it's still going in ten or 15 years. And if it does keep operating, it will likely be because the owners install still better scrubbers, etc.
- Jesse December 31, 2014
  
  I hope you're right. I've attached a page containing an original shoreline map of Tacoma and views of the tide flats before they were industrial wastelands. Note that Tacoma had a great view of water and natural wildlife until the tide flats were filled in for industrial purposes... about the same time Tacoma's boom ended... hmmm... Looks like water views all the way south to South 15th Street - a full mile south of where Commencement Bay starts today. What if downtown Tacoma were ON Commencement Bay today? How would Tacoma look? (I also find it ironic that Urban Waters is built on top of wetland infill... kinda hypocritical...) http://www.tacomapubliclibrary.org/PrintPage.aspx?nid=326
  - talus January 1, 2015
    
    I wonder if RockTenn examined the earthquake risk on that fill before they bought the mill. Liquefaction and liability city. Also perhaps one of the dumbest places one could find for an oil tank farm.