The Softwood Forest Products Buyer - July/August 2022

TRADE TALK
TRADE TALK
Boise Cascade Reaches Agreement
To Acquire Coastal Plywood
Operations
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Boise, ID—Boise Cascade Company (“Boise Cascade,” the “Company”),
headquartered here, announced recently that it has reached an agreement to
acquire Coastal Plywood Company (“Coastal”), including its two manufacturing
locations, from Coastal Forest Resources Company for $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, FL, and Chapman, AL, which employ approximately 750 people.
“This acquisition incrementally expands our veneer capacity in support of our
customers,” said Nate Jorgensen, CEO, Boise Cascade. “Near term, it provides
us the ability to optimize our existing engineered wood products (EWP) asset
base. Longer term, we are excited to fully integrate this strategic venture and
we intend to invest $50 million into our Southeast operations over a three-year
period to further our EWP production capacity.”
Travis Bryant, CEO of Coastal Forest Resources Company, stated, “Coastal
has a long history of manufacturing quality products and a strong reputation in
the markets we serve. This transaction represents an opportunity for our talented
and dedicated employees to join a dynamic organization, offering them a secure
future with great opportunities ahead.”
“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, including receipt of antitrust approval
under the Hart-Scott-Rodino Act of 1976, as amended.
Boise Cascade was advised by Perkins Coie LLP, as outside legal counsel,
and Coastal was advised by Harris Williams, as financial advisor, and Hunton
Andrews Kurth LLP, as outside legal counsel, in the transaction.
About Boise Cascade
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.
For more information, visit Boise Cascade’s website at www.bc.com.
PotlatchDeltic And CatchMark
To Combine To Create A Leading
Integrated Timber REIT
Spokane, WA—PotlatchDeltic Corporation (“PotlatchDeltic”), headquartered
here, and CatchMark Timber Trust, Inc. (“CatchMark”) recently announced
that they have entered into a definitive agreement to combine in an all-stock
transaction. The acquisition by PotlatchDeltic will
strengthen and diversify a leading integrated timber
REIT and continue to enhance shareholder value.
Based on the closing stock prices of PotlatchDeltic
and CatchMark recently, the combined company
is expected to have a pro forma market capitalization
over $4 billion and total enterprise value of
more than $5 billion, including $557 million in net
debt.
Eric J. Cremers, president and chief executive officer
of PotlatchDeltic, said, “We are excited about
growing shareholder value by combining Potlatch-
Deltic and CatchMark. With CatchMark, we gain
Eric J. Cremers
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significant scale in three states and diversify our timberland holdings into some
of the strongest markets in the U.S. South. In addition, the location of Catch-
Mark’s land near large population centers provides attractive rural real estate
sales opportunities. PotlatchDeltic will retain a strong balance sheet and liquidity
after the merger is completed, providing a platform for continued growth. We
also remain committed to responsible environmental, social, and governance
strategies.”
Brian M. Davis, president and chief executive officer of CatchMark, said,
“This partnership with PotlatchDeltic unlocks value for our stockholders and
positions us well for sustainable success over the long term. By joining together
our high-quality assets and our dedicated and talented employees, we will greatly
enhance the potential of PotlatchDeltic. We look forward to working together
as we integrate our two companies and capitalize on the robust opportunities for
growth and success.”
To learn more, go to www.potlatchdeltic.com.
Biewer Sawmill In Winona, MS Ships
First Truckload
St. Clair, MI—John A. Biewer Company (Biewer Lumber), headquartered
here, announced that the first truckload has shipped from their latest sawmill in
Winona, MS, recently.
The Winona facility is Biewer’s second facility in the South. Production will
be 250-plus million board feet annually.
“We have had a great experience with our mill in Newton, MS, which began
operating in early 2016, and we were able to implement enhancements to the
design to improve efficiencies in Winona,” said Tim Biewer, president.
Biewer’s latest Southern facility will be led by the fourth generation of the
Biewer family: Tim Biewer’s son, Blake Biewer. “It has been very rewarding to
be a part of this state-of-the-art facility from the start, and I am excited for the
future of our company,” commented Blake.
Biewer Lumber is a fourth-generation, family-owned group of companies that
are committed to the environment and best forest practices. Biewer’s family of
companies currently includes five sawmills, three treating and distribution facilities,
and a full-service logistics company.
For more information, please visit www.biewerlumber.com/winona.
Lucidyne Completes Brand
Integration With MiCROTEC
Corvallis, OR / Vancouver, BC—Lucidyne
Technologies, Inc., a North American leader in automated
lumber scanning and optimization, recently
announced its brand integration with MiCROTEC,
global technology partner for the sawmilling and
wood processing industry, has been completed.
Lucidyne will work under the common corporate
brand of MiCROTEC to build world-leading wood
scanning solutions for customers in North America,
Australia and New Zealand.
“The integration of our groundbreaking patented
technology and expert team into the MiCROTEC
Frank Jöst
ecosystem brings scale, service and innovation
within North America that wasn’t possible before,” said Mark Hiatt, Managing
Director of Lucidyne. “Our companies share a parallel history and vision
that make this a perfect evolution for us — and those we serve. Now, unified as
MiCROTEC, we can offer a long-term, strengthened foundation, as well as access
to an expanded product portfolio and network of support that will take our
customers’ businesses to the next level.”
Lucidyne, known for its industry innovation, customer relationships and
unparalleled support since 1985, will merge its patented software platform,
which uses deep learning artificial intelligence techniques to grade lumber, into
MiCROTEC’s family of scanning solutions. The integration brings the best of
the companies’ technologies together for creating new, co- developed products,
strengthening MiCROTEC’s offerings as well as its focus on delivering exceptional
service, according to a company press release.
“By seamlessly integrating Lucidyne’s cutting-edge technology into our
portfolio and offering customers additional MiCROTEC solutions for board and
log scanning, we’re transforming wood processing across North America, with
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