Boise Cascade Acquires Coastal Plywood Operations For $512M

Boise Cascade Co BCC has agreed to acquire Coastal Plywood Company, including two manufacturing locations, from Coastal Forest Resources Company for $512 million.
Coastal Plywood provides quality plywood, lumber, and treated wood products throughout the eastern U.S.
The purchase agreement includes locations in Havana, Florida, and Chapman, Alabama, which employ ~750 people.
The scope of the transaction does not include Coastal Plywood's parent company or timberlands assets.
"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," commented CEO Nate Jorgensen.
Boise Cascade intends to fund the transaction and closing-related expenses from its existing cash balances. It held $922.7 million of cash and cash equivalents as of March 31, 2022.
BCC expects to close the acquisition in 3Q22.
Price Action: BCC shares traded lower by 0.25% at $79.97 on the last check Friday.
Photo Via Company