The takeover of Longview Fibre by a Toronto property company represents the abrupt end of an era. It's unclear how Cascadia will benefit.
Family-run Longview was bound to get caught up in the consolidation of the industry. The 80-year-old timber company was barely profitable and as recently as 2004 handled communications by fax and postal service instead of email. Acquisition by Brookfield Asset Management, one of the leading global investors in timberlands, will surely bring the operation up to date.
It's far from clear how acquirer Brookfield Asset Management can afford to pay a hefty premium for Longview's mills and forests. Lumber prices are falling and there will be pressure to cover the debt by cutting costs and selling more. This should concern officials in towns where the company dominates and anyone who believes in the sustainability of the region's forests.