Weston Forest acquires Monterra Lumber Mills
Two of the province’s largest lumber companies are poised to merge.
On August 24, Mississauga’s Weston Forest announced it had reached an agreement to purchase Bolton’s Monterra Lumber Mills Ltd.
Weston Forest is one of the largest distributors of forest products to the construction industry in Canada. The firm supplies the infrastructure, road and bridge, and high rise sectors along with several other niche markets. Monterra, meanwhile, is a lumber remanufacturer that provides products for home centres in Canada and the United States, as well as a diverse range of industrial products for the crating and packaging industry.
Under the terms of the agreement, Monterra will continue to be run by its founder and president, Claudio Tersigni.
“Claudio and I have been friends and have done business together for close to 40 years,” said Weston CEO Rick Ekstein. “He is one of the best lumbermen, and one of the most decent and ethical people I know. He will be a huge asset to our team.”
“Our success is due to our people and our loyal customers,” said Tersigni, “and I know that Weston will provide us with the resources and stability necessary to keep growing our business and provide continued opportunity to our long-term employees.”
The purchase of Monterra, says Weston CEO Steve Rhone, is an important pillar in the firm’s ongoing expansion.
“This acquisition will continue the Weston Forest commitment to growth, to offering innovative solutions to our suppliers and customers, and to providing opportunities for our people,” he said.
The acquisition, which is expected to close on September 30, comes at a time when lumber and plywood prices throughout North America have been on an historic upward trend.
Immediately after the COVID pandemic broke out, commodity and lumber prices stalled, and producers cut volumes to never-before-seen levels. Demand, on the other hand, skyrocketed. Consumers began purchasing lumber for home improvements when it became increasingly clear the pandemic would affect their annual travel plans. A return to construction, and strong demand for lumber in the home building market especially, has further increased demand.
Inventory strains aren’t the only challenge before the industry. Shortages are being compounded by challenges in moving goods across borders, poor harvesting weather across eastern Canada and the Great Lakes regions, productivity issues due to the need for physical distancing and increased personal protective equipment, as well as thew threat of further shutdowns at mills as the COVID pandemic remains unresolved in many parts of the United States.
The upshot: a high-price market that only continues to rise.