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Boise Cascade Co., Boise, Id., has reached an agreement to acquire Coastal Plywood Co. from Coastal Forest Resources Co. for $512 million.
The deal includes manufacturing locations in Havana, Fl., and Chapman, Al., which employ approximately 750 people.
“This acquisition incrementally expands our veneer capacity in support of our customers,” said Nate Jorgensen, CEO, Boise Cascade. “Near term, it provides us the ability to optimize our existing engineered wood products 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 sale, expected to close in the third quarter, does not include Coastal’s parent company or timberlands assets.