Boise Cascade Company acquired Coastal Plywood Company, including its two manufacturing locations, from Coastal Forest Resources Company for $512 million, subject to certain closing adjustments. Boise Cascade said it plans to fund the transaction and closing-related expenses from its existing cash balances.
“This acquisition incrementally expands our veneer capacity in support of our customers,” Nate Jorgensen, CEO of Boise Cascade, said in a news release. “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.”
Coastal is a provider of plywood, lumber, and treated wood products throughout the eastern United States. The purchase agreement includes its locations in Havana, Florida, and Chapman, Alabama.
“Coastal has a long history of manufacturing quality products and a strong reputation in the markets we serve,” Travis Bryant, CEO of Coastal Forest Resources Company, said. “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.”
The transaction between Boise Cascade and Coastal does not include Coastal’s parent company or timberlands assets. Closing of the acquisition is expected to close in the third quarter of 2022.
“These are well-invested and managed plants that fit nicely into our existing footprint of integrated facilities in the Southeast,” Mike Brown, executive vice president of Boise Cascade, said. “We look forward to welcoming the Coastal team to Boise Cascade.”
Boise, Idaho-based Boise Cascade is a producer of engineered wood products and plywood and a wholesale distributor of building products.
