Suwanee Lumber Company (B)

In early 2018, Blue Wolf Capital Management received an offer to sell both its mill in Arkansas (Caddo) and its mill in Florida (Suwanee) to Conifex, an upstart Canadian lumber company. The Conifex offer would pay Blue Wolf US$172.9 million in cash along with nearly 20% of Conifex’s stock (plus warrants for more stock). Blue Wolf hadn’t planned to put both mills up for sale yet, but was the deal too good to pass up?