Here's the key details from RJ. These aren't available publically and you need a buddy with ThomsonOne (universities, management consultants and banks have it) or another financal terminal to pull them down usually.
Highlights are put on by me; all direct quotes.
"Recommendation
Our Outperform rating is a function of an inexpensive valuation, powerful
commodity tailwinds, and strong FCF potential from the incorporation of the El
Dorado rebuild plus the addition of 370 mln bf of US South capacity. We highlight
that following this transformational acquisition CFF provides investors with the
greatest pro-forma leverage to the high margin US South region. Further, we see
potential for a trading multiple expansion from additional scale along with delivery
on operational benchmarks.
We advise investors add to positions. Analysis
Expanding in the high margin US South region – Conifex announced the acquisition
of two sawmills in the US South for US$228 mln (incl. working capital) with annual
capacity of 370 mmfbm (see further details on page 2). With the assets completing
sizeable capital optimization programs last year we focus on forward earnings to
assess the transaction. Assuming EBITDA of US$130/mfbm shipped implies ~US$45
mln of additional 2019 EBITDA (excluding synergies of US$5 mln). This implies a
transaction multiple of 5.1x (4.6x incl. synergies), which is in-line with our pre-deal
2018 5.1x Conifex EBITDA multiple. We note the fact that the vendor did not simply
auction the assets and accepted ~1/4 of the deal price in CFF shares as a display of
confidence in the pro-forma entity."