Boise Cascade Reaches Agreement to Acquire Coastal Plywood Operations
June 13, 2022
BOISE, Idaho (News release) -- Boise Cascade Company announced that it has reached an agreement to acquire Coastal Plywood Company, including its two manufacturing locations, from Coastal Forest Resources Company for $512 million, subject to certain closing adjustments. The Company currently plans to fund the transaction and closing-related expenses from its existing cash balances.
Coastal is a provider of quality plywood, lumber, and treated wood products throughout the eastern U.S. The purchase agreement includes its locations in Havana, Florida, and Chapman, Alabama, which employ approximately 750 people.
"This acquisition incrementally expands our veneer capacity in support of our customers," said Nate Jorgensen, CEO, Boise Cascade. "Near term, it provides us the ability to optimize our existing engineered wood products (EWP) asset base. Longer term, we are excited to fully integrate this strategic venture and we intend to invest $50 million into our Southeast operations over a three-year period to further our EWP production capacity."
Travis Bryant, CEO of Coastal Forest Resources Company, stated, "Coastal has a long history of manufacturing quality products and a strong reputation in the markets we serve. This transaction represents an opportunity for our talented and dedicated employees to join a dynamic organization, offering them a secure future with great opportunities ahead."
"These are well-invested and managed plants that fit nicely into our existing footprint of integrated facilities in the Southeast," said Mike Brown, executive vice president, Boise Cascade. "We look forward to welcoming the Coastal team to Boise Cascade."
The scope of this transaction does not include Coastal's parent company or timberlands assets. Closing of the acquisition is expected in the third quarter of 2022, subject to customary closing conditions, including receipt of antitrust approval under the Hart-Scott-Rodino Act of 1976, as amended.
Boise Cascade was advised by Perkins Coie LLP, as outside legal counsel, and Coastal was advised by Harris Williams, as financial advisor, and Hunton Andrews Kurth LLP, as outside legal counsel, in the transaction.