Transaction to Generate $90 Million of Cash to Boise
BOISE, Idaho, April 15 /PRNewswire-FirstCall/ -- Boise Cascade Corporation
(NYSE: BCC) and its partners in Voyageur Panel Limited, announced today that
they have reached an agreement with Ainsworth Lumber Co. Ltd. for its purchase
of Voyageur Panel for approximately $193 million, plus as much as $10 million
more based on oriented strand board (OSB) prices between closing and year-end.
Boise should realize approximately $90 million from the transaction, which is
expected to close in the second quarter 2004.
Voyageur Panel is a corporation whose shares are owned by Boise,
Abitibi-Consolidated Inc., Northwestern Mutual, and Allstate Insurance
Company. Boise owns approximately 47% of Voyageur Panel, Abitibi-Consolidated
holds 21%, Northwestern Mutual owns 17%, and Allstate owns the remaining 15%.
BMO Nesbitt Burns, Inc., acted as financial advisor to the shareholders of
Voyageur Panel.
Voyageur Panel operates an OSB plant in Barwick, Ontario, Canada. The
plant began production of OSB in 1997 and has an annual capacity of 440
million square feet. OSB is used mainly as sheathing for exterior walls and
roofs, and as floor underlayment. In recent years Voyageur Panel added rim
board and web, for use in engineered wood products, to its product line. The
plant employs 158.
About Boise Cascade Corporation
Boise, headquartered in Boise, Idaho, provides solutions to help customers
work more efficiently, build more effectively, and create new ways to meet
business challenges. We own or control more than 2 million acres of
timberland, primarily in the United States, to support our manufacturing
operations. Boise had sales of $8.2 billion in 2003.
Boise Office Solutions, headquartered in Itasca, Illinois, is a division
of Boise and a premier multinational contract and retail distributor under the
OfficeMax brand of office supplies and paper, technology products, and office
furniture. Boise Office Solutions had 2003 sales of $4.0 billion.
Boise Building Solutions, headquartered in Boise, Idaho, is a division of
Boise and manufactures plywood, lumber, particleboard, and engineered wood
products. The business also operates 27 facilities that distribute a broad
line of building materials, including wood products manufactured by Boise.
Boise Building Solutions posted manufacturing sales of $824 million and
distribution sales of $2.0 billion in 2003.
Boise Paper Solutions, headquartered in Boise, Idaho, is a division of
Boise and a manufacturer of office papers, a majority of which are sold
through Boise Office Solutions. Boise Paper Solutions also manufactures
printing, forms, and converting papers; value-added papers; newsprint;
containerboard and corrugated containers; and market pulp. The division had
2003 sales of $1.9 billion. Visit the Boise website at http://www.bc.com.
Forward-Looking Statements
The statement within this news release regarding the expected time of the
closing of the transaction is a "forward-looking statement" within the meaning
of the Private Securities Litigation Reform Act of 1995. This forward-looking
statement speaks only as of the date of this press release. This
forward-looking statement is based on the current expectations and beliefs of
Boise's management and is subject to a number of uncertainties and assumptions
that could cause the expected closing date to differ or could cause the
closing not to occur at all.
SOURCE Boise Cascade Corporation
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Related links:
http://www.bc.com
CONTACT:
Media, Ralph Poore, +1-208-384-7294, or home,
+1-208-331-2023, or Investors, Vincent Hannity, cell,
+1-208-890-6385, both of Boise Cascade Corporation
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