Boise Cascade acquires Thorsby plant from Ga.-Pacific
Boise Cascade Company has completed its acquisition of the Georgia-Pacific engineered lumber operation in Thorsby.
Boise Cascade announced the acquisition of Georgia-Pacific’s engineered lumber production facilities in Thorsby and Roxboro, N.C. for $215 million, including closing date estimated working capital of $25 million subject to final adjustment.
“Our intent is to keep operating that facility,” Boise Cascade Spokesman John Sahlberg said. “It’s a first-rate facility with great employees.
Sahlberg said the type of product put out by the plant would change slightly to become consistent with Boise Cascade specifications.
“The employees and community should not see any significant differences in the operation of the facility aside from the need for us to produce our lumber,” Sahlberg said.
The plant was closed Thursday and Friday as the deal was being finalized, Sahlberg said.
The plant’s employees, which number about 225, should have received a letter detailing what to expect during the process and will go through a “re-hiring” process, he said.
“We anticipate being able to have all the employees make it through the process,” Sahlberg said. “We’re not trying to screen anybody out.”
The spokesman said that, with the building season starting, it is important to company officials to have the plant operating again as soon as possible, though it’s unclear exactly when.
Georgia-Pacific purchased the plant from International Paper in 2007.
Boise Cascade used $90 million of its cash and $130 million in new borrowing to pay for the transaction and closing-related expenses.
Boise Cascade manufactures engineered wood products, plywood, lumber and particleboard and distributes a broad line of building materials, including wood products manufactured by the company’s wood products division.
Boise Cascade is a public company traded on the New York Stock Exchange under the symbol “BCC.”
“The acquired engineered lumber capacity fits well into our current production facilities and will help us optimize production across our entire system and expedite delivery to our customers across the southeastern United States,” Boise Cascade CEO Tom Corrick said in a press release. “With this acquisition, we will have engineered lumber facilities strategically placed throughout our North American markets and be able to provide product to our customers as the housing market continues to recover.”
Boise Cascade currently has engineered lumber (also called engineered wood products) facilities in White City, Oregon; Alexandria, Louisiana; and St. Jacques, New Brunswick, Canada.
The Thorsby facility produces laminated veneer lumber while the Roxboro facility currently produces I-joists.
Boise Cascade expects to invest capital and hire additional employees to increase production at these mills in 2016 and beyond to obtain significant logistics benefits as well as to meet expected growth in new residential construction, according to the release.
Learn more about the company at BC.com.