Yudesign | Dreamstime
Boise Cascade Co., a building materials manufacturing company based in Boise, Idaho, has announced an agreement to acquire Coastal Plywood Co., a plywood manufacturer based in Havana, Florida. The acquisition includes its two manufacturing locations, from Coastal Forest Resources Co., a subsidiary of Coastal Plywood, for $512 million, subject to certain closing adjustments.
The purchase agreement includes its locations in Havana, Florida, and Chapman, Alabama, which employ about 750 people, who will join Cascade.
"This acquisition incrementally expands our veneer capacity in support of our customers," says Nate Jorgensen, CEO of 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 three years to further our EWP production capacity."
"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 Co. “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."
Cascade says it currently plans to fund the transaction and closing-related expenses from its existing cash balances.
The scope of this transaction does not include Coastal's parent company or timberlands assets. The 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. Coastal was advised by Harris Williams, as a financial advisor, and Hunton Andrews Kurth LLP, as outside legal counsel, in the transaction.
