BOISE, Idaho, Dec. 21 /PRNewswire/ -- Boise Cascade, LLC, today announced
it has reached a definitive agreement to sell approximately 2.2 million acres
of timberland located across the Pacific Northwest, Louisiana, Alabama, and
Minnesota to Forest Capital Partners, LLC, of Boston, Massachusetts, for
$1.65 billion in cash.
Proceeds from the sale will be used to reduce Boise's outstanding debt.
The transaction is expected to close in the first quarter of 2005.
As part of the transaction, Boise will enter into a number of long-term
fiber supply agreements with Forest Capital, ensuring the continued supply of
fiber to Boise's pulp and paper mills and wood products manufacturing
facilities. The forests will be managed in accordance with the Sustainable
Forestry Initiative(R).
"This sale, which is in line with our strategy of rapid debt reduction,
will significantly strengthen our balance sheet and allow us to focus on our
paper, wood products and distribution businesses," said Tom Stephens, CEO of
Boise. "Forest Capital is a well-respected timberland management
organization, and we are looking forward to working with them to successfully
transition the properties and having them as a key supplier to our
manufacturing facilities going forward."
Scott Jones and Matt Donegan, Managing Directors at Forest Capital, issued
the following statement: "We are very excited about this transaction as it
represents the single largest cash timberland acquisition in history. The
geographic diversity and productivity of the Boise timberlands are unmatched
and will represent the foundation of our timberland portfolio. We are
fortunate to have Boise as a customer and are looking forward to a successful,
long-term relationship."
Boise's exclusive financial advisor for the transaction is Goldman, Sachs
& Co., and Kirkland and Ellis served as Boise's legal advisor. Sutherland
Asbill& Brennan LLP served as Forest Capital's legal advisor.
About Boise Cascade, LLC
Boise, headquartered in Boise, Idaho, provides solutions to help customers
work more efficiently, build more effectively, and create new ways to meet
business challenges.
Boise Building Solutions, Manufacturing, headquartered in Boise, Idaho, is
a subsidiary of Boise and manufactures plywood, lumber, particleboard, and
engineered wood products.
Boise Building Solutions, Distribution, headquartered in Boise, Idaho, is
a subsidiary of Boise and operates 27 facilities that distribute a broad line
of building materials, including wood products manufactured by Boise.
Boise Paper Solutions, headquartered in Boise, Idaho, is a subsidiary of
Boise and a manufacturer of office papers; printing, forms, and converting
papers; value-added papers; newsprint; containerboard and corrugated
containers; and market pulp. Visit the Boise website at http://www.bc.com .
About Forest Capital Partners, LLC
Forest Capital Partners is an independent investment firm with
headquarters in Boston, Massachusetts, that acquires and manages large-scale,
investment-grade forests. Forest Capital's focus is to create investment
value through expert long-term forestry and progressive forest stewardship.
Visit the Forest Capital website at http://www.forestcap.com .
SOURCE Boise Cascade, LLC
 back to top
Related links:
http://www.bc.com
http://www.forestcap.com
CONTACT:
Ralph Poore, +1-208-384-7294, or home,
+1-208-331-2023, or Mike Moser, +1-208-384-6016, or cell,
+1-208-867-4346, both of Boise Cascade, LLC
|
