Tembec Wood Flooring Assets Purchased By Boa-Franc Offshoot

Boa-Franc Inc. (St. Georges, Quebec), owner of the Mirage brand of wood flooring, formed a new entity 8008655 Canada Inc. that will acquire the assets of Vintage Hardwood as well as the Muskoka and Vintage brands from forest products company Tembec (Montreal, Quebec) for $13 million, according to Luc Robitaille, VP of marketing for Boa-Franc.

Tembec announced Monday that it will close its wood flooring plant in Huntsville, Ontario, and that it will complete the transaction for its remaining wood flooring assets-including a prefinishing plant in Ontario-in the coming weeks.

Tembec's plant in Huntsville is expected to close in January, affecting 63 people; it has been in operation for 108 years. Tembec's sawmill operations in Huntsville are unaffected by these moves.

"The flooring division is a small part of Tembec's portfolio, and Tembec President and CEO [James Lopez] has been very clear about the strategy the company has been executing over the last 3 to 4 years about refocusing on our strategic businesses," said Linda Coates, Tembec's vice president, communications and public affairs.

Moving forward, Boa-Franc has signed an agreement to become the sole supplier of unfinished solid flooring for 8008655 Canada Inc., which will do business as Vintage Hardwood Flooring, according to a letter sent to customers and suppliers by Boa-Franc President Pierre Thabet. Thabet also made clear in the letter that the Mirage brand and Vintage Hardwood Flooring will remain distinct and independent.

Thabet said the purchase was "great news for us" and that it will enable his company to increase volume at its plants and maintain jobs. "It will also strengthen our position as a North American leader in our industry and consolidate the Canadian market," he added.

Article updated at 3:17 p.m. Central.