Acadian Timber Corp. Expands Maine Operations with Strategic Acquisition

Acadian Timber Corp. (TSX:ADN), a leading timberland owner and manager in Eastern Canada and the Northeastern United States, has announced the acquisition of assets from A & A Brochu, LLC (A & A Brochu) and its affiliates. The transaction, valued at U.S. $4.8 million, includes harvesting, trucking, and road building equipment, as well as related real estate in the Millinocket, Maine region. This strategic move will enable Acadian to address historical harvesting capacity challenges in Maine, gain greater control over costs, and implement sustainable forestry practices.

The acquisition of A & A Brochu's assets will provide Acadian with a turnkey operation, allowing the company to better manage its existing timberland assets and potentially increase efficiency and reduce costs. By gaining access to additional harvesting equipment and expertise, Acadian will be able to increase its harvesting capacity in Maine, enabling it to harvest more timber from its own lands and those of its customers. This increased capacity will not only lead to higher revenue and cash flows but also strengthen Acadian's competitive position in the region.



The acquisition will also enable Acadian to have greater control over its harvesting and trucking operations, allowing it to better manage costs and implement sustainable forestry practices. By owning and operating the harvesting equipment and services previously provided by A & A Brochu, Acadian can negotiate more favorable terms with suppliers and contractors, further improving its cost control strategies. This improved cost control will help Acadian maintain its competitive position in the market and maximize cash flows from its existing timberland assets.

In addition to the operational benefits, the acquisition will allow Acadian to invest in the communities in which it operates. By integrating A & A Brochu's operations into its own, Acadian can create new job opportunities and contribute to the local economy, further strengthening its relationships with stakeholders in the region.

The acquisition of A & A Brochu's assets aligns with Acadian Timber Corp.'s business strategy of maximizing cash flows from its existing timberland assets through sustainable forest management and other land use activities while growing its business by acquiring assets and actively managing these assets to drive improved performance. This strategic move will enable Acadian to better address the challenges and opportunities in the Maine timber market, ultimately driving long-term growth and shareholder value.

In conclusion, Acadian Timber Corp.'s acquisition of A & A Brochu's assets in the Millinocket, Maine region is a strategic and well-timed move that will enable the company to address historical harvesting capacity challenges, gain greater control over costs, and implement sustainable forestry practices. By leveraging the additional harvesting equipment and expertise, Acadian will be better positioned to maximize cash flows from its existing timberland assets and grow its business in the region.