U.S. – Oregon-based Roseburg Forest Products recently reached an agreement in principle with PotlatchDeltic Corp. to purchase the assets of its subsidiary Del-Tin Fiber LLC, including its medium density fiberboard (MDF) plant located in El Dorado, Ark.

The agreed purchase price was of approximately USD 92 million and the parties expect the sale to close in the first quarter of 2019 after required regulatory approval. The El Dorado MDF plant will continue to operate independently of Roseburg until the transaction closes.

Upon closing, the acquisition will be Roseburg’s third MDF plant purchase in three years. The company acquired Pembroke MDF in eastern Ontario, Canada, in early 2018, and an MDF plant in Medford, Ore., in 2015.

“Roseburg is gradually expanding its geographic footprint in North America in high-performing markets with growth potential,” Roseburg President and CEO Grady Mulbery said. “The El Dorado facility in Arkansas will allow us to leverage synergies with our existing southern composite panel plants, while delivering our successful MDF brands to a broader customer base.”

Roseburg currently produces the Arreis®, Medite®, Medite FR® and Medex® product lines. The EL Dorado MDF plant was built in 1998 and features a 9-foot-wide Kusters continuous press.

“The culture of the El Dorado plant fits Roseburg well, not only from a sales and marketing standpoint, but also from structure and values perspectives,” Jim Buffington, Roseburg’s Business Director for Industrial Products, said. “As a company, we are committed to the composites business in North America, and look forward to welcoming the El Dorado plant and its team members to our organization.”