Varney Agency seeks Canadian expansion with new stake in large Quebec sawmill operator
Photo / Courtesy of Matériaux Blanchet Inc.
The Varney family has acquired a one-third ownership stake in Matériaux Blanchet Inc., one of Quebec's largest independent sawmills.
The family connected to Bangor-based Varney Agency has acquired a one-third ownership stake in what it is calling one of Quebec’s largest independent sawmill operators.
The Varney family announced its investment in Matériaux Blanchet Inc. on Monday. The deal, which closed on Feb. 9, will allow Varney Agency to expand its insurance and forestry insurance business into the Canadian market for the first time.
Tim Varney, Varney Agency’s president and CEO, told Mainebiz that he was one of three partners in an acquisition led by Jackman-based forestry company E J Carrier. Varney is now one of the Canadian company’s three board members. Jean Carrier, who became Matériaux Blanchet’s new president as part of the acquisition, and an unnamed partner are the two other board members.
Financial terms of the deal are not being disclosed.
Founded in 1958, Matériaux Blanchet owns a woodlot in northern Maine through its subsidiary Blanchet Logging and Lumber Co. Across the border in Quebec, the company operates sawmills in Amos and Saint-Pamphile, the latter of which sources 80% of its timber from Maine forests. The company, headquartered in the city of Quebec, has 400 employees and an annual capacity of 300 million board feet of lumber, with export markets in the United States, Western Europe, the Middle East, North Africa, Japan and Taiwan.
Varney said his family's partial ownership of Matériaux Blanchet gives the Varney Agency a base for launching its own office in Canada or acquiring an insurance agency there, adding that Varney Agency is actively pursuing the latter.
“It was basically to help us sell more insurance internationally,” he said.
In addition, Varney said, it will help the insurance company expand its American Loggers Insurance Program, which launched in 2010 and is currently receiving more business in the southeastern United States than in Maine. Varney said he credits the forestry insurance program’s success with its loss control philosophy, which is bolstered by automatic fire suppression equipment that is installed onto harvesting equipment.
“Canada will benefit from that same loss-control philosophy,” he said.
Varney said one of his goals is to lower insurance costs for Matériaux Blanchet by bundling all of its current cargo insurance plans into one, which he said would in turn lower the company’s shipping costs and ultimately lower its customer acquisition costs.
“That would give them an advantage in the marketplace,” he said.
Jean Carrier, Matériaux Blanchet’s president, said in a prepared statement that the company is delighted to have Varney Agency handle all of its insurance needs. “We also look forward to helping them expand their insurance products and business into Canada,” he said.
The Varney family, which operates insurance businesses, car dealerships, commercial real estate and a wireless Internet service provider, employs more than 200 people across Maine, South Carolina and Florida.
Correction: The story has been updated to clarify that the Varney family, not the Varney Agency, has acquired a stake in Matériaux Blanchet Inc. Tim Varney is the owner of Varney Agency.
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