PotlatchDeltic to sell El Dorado business to Roseburg Forest Products
December 24, 2018
SPOKANE, Wash. (News release) -- PotlatchDeltic Corporation announced an agreement to sell its El Dorado Medium Density Fiberboard business to Roseburg Forest Products for a purchase price of approximately $92 million, consisting of $63 million in cash and assumption of $29 million of revenue bond obligations.
"We obtained this well-positioned MDF business through our recent merger with Deltic Timber. The sale of MDF focuses our Arkansas operations on timberlands and lumber while enhancing shareholder value," said Mike Covey, chairman and chief executive officer. PotlatchDeltic expects to use proceeds from the transaction for general purposes.
The transaction is subject to customary closing conditions, including Hart-Scott-Rodino regulatory review, and is expected to close in first quarter 2019. The El Dorado MDF business will continue to operate independently of Roseburg until the transaction closes.
CIBC Capital Markets is acting as financial advisor to PotlatchDeltic.