Western Forest Products and Tla'amin Nation Announce Milestone Agreement for the Purchase and Sale of Western's Stillwater Forest Operation

Executive Summary

• Western Forest Products Inc. entered into an agreement to sell its Stillwater Forest Operation (TFL 39 Block 1, ~154,000 ha) to Qwoqwnes Forestry Holdings Ltd. Partnership for a total purchase price of $80 million.
• Upon closing, Qwoqwnes will manage an allowable annual cut of ≈469,200 m³ and will enter a long‑term fibre supply agreement with Western to provide timber for Western’s BC coastal manufacturing operations.
• The transaction is expected to close later this year, subject to financing and regulatory approvals, and is positioned as a strategic move that enhances Indigenous stewardship while supporting Western’s shift toward higher‑value products and a strong balance sheet.

Key Details

• Transaction Value: $80 million (aggregate purchase price).
• Assets Transferred: 100% ownership of the Stillwater Forest Operation, including Block 1 of Tree Farm Licence 39 (≈154,000 ha) near Powell River, BC.
• Annual Timber Harvest: Allowable cut of ~469,200 cubic metres per year to be managed by Qwoqwnes/Thichum Forest Products.
• Fibre Supply Agreement: Long‑term contract for Qwoqwnes to sell harvested timber to Western for its BC coastal manufacturing facilities.
• Closing Conditions: Subject to financing, Ministry of Forests (BC) subdivision and tenure transfer approvals; both parties targeting closure within 2026.
• Strategic Rationale – Qwoqwnes/Thichum: Reclaims ~43 % of Tla’amin territory, creates local jobs, supports community economic development, aligns with Quadruple Bottom Line approach.
• Strategic Rationale – Western: Supports transition to higher‑value product manufacturing, maintains a strong balance sheet amid challenging operating conditions, and deepens partnership with Indigenous communities.
• Transition Services: Western will provide certain transition services to Qwoqwnes post‑closing to ensure seamless operational handover.

Notable Quotes

• “This acquisition brings another 43% of Tla’amin territory back under our stewardship and control.” – John Hackett, Tla’amin Hegus & Economic Development Board member.
• “The transaction will support executing our strategy and continued focus on accelerating the transition to higher‑value products manufacturing while maintaining a strong balance sheet.” – Steven Hofer, President & CEO, Western Forest Products Inc.