By Adriano Marchese

Interfor Corp. has agreed to acquire 100% of the equity interests of eastern-Canadian lumber producer EACOM Timber Corp. for 490 million Canadian dollars, or around US$385.8 million.

On Tuesday, the Burnaby, British Columbia-based lumber producer said it reached an agreement with an affiliate of Kelso & Co. to acquire the full equity interest of EACOM.

The addition of EACOM will bring around 985 million board feet of production capacity of spruce-pine-fir a year across seven sawmills.

Additionally, it will receive an I-Joist plant with an annual production capacity of 70 million linear feet, as well as a remanufacturing plan with an annual production capacity of 60 million board feet.

The acquisition is part of Interfor's growth-focused strategy, and will increases its total lumber production capacity by 25%.

The company also said that EACOM supports the company's geographic diversity of operations, with eastern Canada seen as one of the major lumber producing regions in North America.

"This transaction makes Interfor a truly North American lumber producer, with operations in all the key fibre regions on the continent, further diversifying and de-risking our operating platform and enhancing our growth potential and opportunity set," President and Chief Executive Officer Ian Fillinger said.

Write to Adriano Marchese at adriano.marchese@wsj.com