UFP Industries' GreenFirst Enhances Sustainability with KapCorp Spin-Out and Leadership Changes

GreenFirst Forest Products Strengthens Commitment to Sustainability with KapCorp Spin-Out

GreenFirst Forest Products Inc. is making significant strides in its sustainability journey following the successful completion of a Plan of Arrangement, which involves the distribution of shares from Kap Corporation (KapCorp) to its shareholders. Effective November 7, 2024, GreenFirst shareholders will receive one common share of KapCorp for every ten common shares of GreenFirst held. This strategic move not only reflects GreenFirst's dedication to enhancing shareholder value but also underscores its commitment to sustainable forestry and responsible management practices, which are integral to the company’s operational ethos.

The spin-out comes at a time when the demand for sustainable products and practices is surging across various industries, particularly in the building materials sector. GreenFirst operates four sawmills across more than 6.1 million hectares of FSC® certified public forestlands in Ontario, emphasizing its focus on responsible forestry. The company’s emphasis on environmentally friendly practices positions it favorably in a market increasingly driven by sustainability concerns. The new structure, with KapCorp emerging independently, allows both companies to concentrate on their respective missions—GreenFirst on lumber production and forestry management, and KapCorp on advancing innovative recycling practices.

KapCorp's appointment of Doug Crawford to its Board of Directors is another significant development. With over 15 years of experience in the recycling industry, Crawford brings a wealth of knowledge, having expanded the Kenny U-Pull automotive recycling business significantly during his tenure at American Iron and Metal. His expertise will strengthen KapCorp's leadership, aligning with the company's goal of becoming a leader in the recycling sector. KapCorp's CEO, Terry Skiffington, expresses confidence in Crawford’s ability to drive the company’s growth and enhance its commitment to sustainable practices.

In addition to the spin-out, GreenFirst will hold a conference call on November 13, 2024, to discuss its third-quarter financial results. This call, which follows the release of financial results on November 12, demonstrates GreenFirst’s commitment to transparency and communication with its stakeholders. The ongoing focus on sustainable development and responsible forestry practices is expected to position GreenFirst as a leader in the building products industry, paving the way for future growth while contributing positively to environmental stewardship.