Boise Cascade Acquires Coastal Plywood Operations For $512M

• Boise Cascade Co (NYSE: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