Boise Cascade wraps up engineered lumber deal with GP

Boise Cascade Company has completed the acquisition of Georgia-Pacific LLC`s engineered lumber production facilities in Thorsby, Alabama, and Roxboro, North Carolina.

The deal closed at a purchase price of $215 million and is expected to add approximately $40 million to the company`s mid-cycle EBITDA.

"We are pleased to welcome the 270 employees at Thorsby and Roxboro, along with the commercial sales team supporting those facilities, to the Boise Cascade family," commented Tom Corrick, CEO of Boise Cascade.  "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. 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 facilities in White City, Oregon; Alexandria, Louisiana; and St. Jacques, New Brunswick, Canada.

The Thorsby facility produces laminated veneer lumber (LVL), while the Roxboro facility produces I-joists. Roxboro's LVL production assets are currently idled. 

Boise Cascade is also planning to invest capital and hire additional employees to increase production at these mills in anticipation of growth in new residential construction. 

The company believes the addition of Thorsby and Roxboro will increase LVL billet capacity by 9 million cubic feet and I-joist capacity by 80 million lineal feet.