Mercer International Inc. Receives Court Sales Order Approval to Acquire Structurlam Mass Timber Assets

Selected Highlights:

• Mercer to acquire substantially all of Structurlam's assets, including its state-of-the-art mass timber facility in Conway, Arkansas, cementing Mercer's position as a leading mass timber provider in North America.
• The proposed acquisition will materially increase Mercer's cross-laminated timber capacity to approx. 210,000 m³ of CLT and add 45,000 m³ of glulam production capacity.
• The addition of glulam capability will expand Mercer's product offering and enhance its ability to service its growing customer base.
  

NEW YORK, May 30, 2023 (GLOBE NEWSWIRE) -- Mercer International Inc. ("Mercer" or the "Company") (Nasdaq: MERC) today announced that it has received applicable Bankruptcy Court approval of a sales order approving the acquisition of substantially all of the assets of Structurlam Mass Timber Corporation and its subsidiaries ("Structurlam"), including a production facility located in Conway, Arkansas (the "Conway Facility") and production facilities in British Columbia, Canada, for $81.1 million, exclusive of a break fee and expense reimbursement, subject to customary adjustments. The transaction is subject to customary conditions and is expected to be completed shortly.

The Conway Facility

The Conway facility is a modern, state-of-the-art manufacturing facility that was built in 2021 and:

• has an annual capacity of approximately 75,000 m³;
• can produce both glued laminated timber (glulam) and cross-laminated timber (CLT);
• includes over 280,000 square feet of manufacturing space; and
• is strategically located in the Southern United States in proximity to growing construction markets and with access to a large and high-quality regional wood basket.

British Columbia Facilities

The assets also include three facilities located in British Columbia, Canada with a combined annual capacity of approximately 40,000 m³ of glulam and CLT.

Glulam

The transaction will, among other things, add glulam production capability to Mercer's existing mass timber offering. Glulam is a stress-rated, engineered wood product comprised of wood laminations that are bonded together. It is commonly used for support structures such as columns, beams, floor joists, and trusses and offers a high degree of customization and pre-fabrication. With a high strength-to-weight ratio, it offers increased efficiencies in logistics and a smaller carbon footprint relative to common construction materials such as steel and concrete.