Boise Cascade selling N.C. plywood operations
Boise Cascade Company reported that it is selling its plywood operations in Moncure, N.C. to an affiliate of Southern Veneer Products.
Based in Fitzgerald, Ga., Southern Veneer is a privately-held manufacturer of plywood, veneer and wood by-products.
According to Boise Cascade, the Moncure facility primarily supplies hardwood plywood to the furniture panel sector.
“The acquisition of this facility more closely aligns with Southern Veneer’s business strategy. We believe this sale provides the best long-term option for continuing to serve the furniture market and sustain employment at the mill into the future,” said Mike Brown, executive vice president, Wood Products division. “Southern has been a proven and trusted veneer supplier for Boise Cascade for more than 10 years. They have a committed ownership and management team with the best interests of the customers, employees and the community at its core.”
Approximately150 employees are employed by the facility.
“We are excited to enter into this agreement with Boise Cascade as the addition of the Moncure facility is a continuation of our plan to expand our geographic presence and build a diversified portfolio of world class assets,” said Ken Adams, president of Southern Veneer. “We intend to invest in equipment upgrades to make full use of the production capacity at the plant. We look forward to welcoming the employees onto our team and working with the plant’s suppliers and customers.”
“As we conclude optimization of our veneer sourcing strategy and with the capital investments we’ve committed to our Chester, Florien and Oakdale facilities, we believe there is ample veneer capacity internally and externally to meet the future needs of our EWP customers,” said Brown.
The sale is contingent upon the results of the due diligence process, which is expected to be complete in the first quarter, Boise Cascade said.
The Boise, Idaho-based wood products manufacturer and building products distributor also said it will record a pre-tax charge of approximately $25 million in the fourth quarter of 2018 as a result of writing down the carrying value of the Moncure facility and the associated inventories, as well as accruing anticipated expenses related to the sale to Southern.
Based in Fitzgerald, Ga., Southern Veneer is a privately-held manufacturer of plywood, veneer and wood by-products.
According to Boise Cascade, the Moncure facility primarily supplies hardwood plywood to the furniture panel sector.
“The acquisition of this facility more closely aligns with Southern Veneer’s business strategy. We believe this sale provides the best long-term option for continuing to serve the furniture market and sustain employment at the mill into the future,” said Mike Brown, executive vice president, Wood Products division. “Southern has been a proven and trusted veneer supplier for Boise Cascade for more than 10 years. They have a committed ownership and management team with the best interests of the customers, employees and the community at its core.”
Approximately150 employees are employed by the facility.
“We are excited to enter into this agreement with Boise Cascade as the addition of the Moncure facility is a continuation of our plan to expand our geographic presence and build a diversified portfolio of world class assets,” said Ken Adams, president of Southern Veneer. “We intend to invest in equipment upgrades to make full use of the production capacity at the plant. We look forward to welcoming the employees onto our team and working with the plant’s suppliers and customers.”
“As we conclude optimization of our veneer sourcing strategy and with the capital investments we’ve committed to our Chester, Florien and Oakdale facilities, we believe there is ample veneer capacity internally and externally to meet the future needs of our EWP customers,” said Brown.
The sale is contingent upon the results of the due diligence process, which is expected to be complete in the first quarter, Boise Cascade said.
The Boise, Idaho-based wood products manufacturer and building products distributor also said it will record a pre-tax charge of approximately $25 million in the fourth quarter of 2018 as a result of writing down the carrying value of the Moncure facility and the associated inventories, as well as accruing anticipated expenses related to the sale to Southern.