An Okanagan company that filed for bankruptcy earlier this year is now part of a larger B.C. organization.
Last week, Structurlam Mass Timber Corporation announced that all of its assets had been purchased by Mercer International of Vancouver for US$83.5 million.
Based in Penticton, Structurlam specialized in mass timber, which is wood that’s been glued or laminated together, then cut out in various shapes, sizes and lengths.
In April, Structurlam entered into a purchase agreement for US$60 million with Mercer, though the deal was subject to higher and better bids.
The Chapter 11 auction took place on May 23, with a news release stating that Mercer was declared the winner after several rounds of bidding. The sale also received approval from B.C.’s Supreme Court on June 1.
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“This is as successful an outcome as any one of our stakeholders could have hoped for,” said Structurlam CEO Matthew Karmel.
“A lot of hard work by many people was required to get us through a very difficult period for the company, so this is indeed a very special moment. I wish Mercer and all our employees the very best as they go forward.”
Mercer told Global News earlier this year that it has a pulp mill in Castlegar, a small forestry operation in Lumby and a mass-timber operation in Spokane, Wash.
Overall, it employs around 500 people in B.C., but has around 4,500 to 5,000 employees across the globe, mainly in Germany.
Mercer said Structurlam’s product line is similar to what it’s developing, and that Structurlam’s synergies and elements are consistent with its own.
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