"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 Mike Brown, executive vice president, Wood Products division.

The sale is contingent upon the results of the due diligence process, which is expected to be complete in the first quarter. Boise Cascade 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.

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.