Boise Cascade Announces Agreement to Acquire Coastal Plywood Company

Boise Cascade Company, a leading producer of engineered wood products and plywood in North America, announced today (6-10-22) that it has reached an agreement to acquire Coastal Plywood Company, including its two manufacturing facilities locations—one in Havana, Florida and the other in Chapman, Alabama—from Coastal Forest Resources Company for $512 million, subject to certain closing adjustments.

Boise currently plans to fund the transaction and closing-related expenses from its existing cash balance.

Commenting on the agreement, Nate Jorgensen, Boise Cascade’s CEO, said:

“This acquisition incrementally expands our veneer capacity in support of our customers. 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.”

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.