USA - Boise Cascade announced that it has reached an agreement to acquire Coastal Plywood, including its two manufacturing locations, from Coastal Forest Resources for USD 512 million, subject to certain closing adjustments.

The Company currently plans to fund the transaction and closing-related expenses from its existing cash balances.

Coastal is a provider of quality plywood, lumber, and treated wood products throughout the eastern U.S. The purchase agreement includes its locations in Havana, Florida, and Chapman, Alabama, which employ approximately 750 people.

“These are well-invested and managed plants that fit nicely into our existing footprint of integrated facilities in the

Southeast,” said Mike Brown, executive vice president, Boise Cascade. “We look forward to welcoming the Coastal team to Boise Cascade.”

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.

Boise Cascade is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products.