Roseburg Forest Products and PotlatchDeltic Corporation (NASDAQ:PCH) announced today that they have completed the previously announced purchase and sale of the assets of the PotlatchDeltic subsidiary Del-Tin Fiber LLC, including its medium density fiberboard (MDF) plant located in El Dorado, Ark.
The two companies reached an agreement in principle in December 2018, dependent upon final due diligence and regulatory approval.
“The El Dorado MDF plant serves as the third point in Roseburg’s North American MDF manufacturing triangle and will play a key role in our continued expansion into the market,” Roseburg President and CEO Grady Mulbery said. “It is located in a region with a healthy wood basket and a robust history of wood products manufacturing. El Dorado MDF is already a profitable operation, and we look forward to seeing what the plant and its employees will do with further investment under long-term ownership.”
El Dorado MDF is Roseburg’s third MDF plant purchase in the past four years. The company acquired Pembroke MDF in eastern Ontario, Canada, in early 2018, and an MDF plant in Medford, Ore., in 2015.
“We believe this deal is a win for all parties. The El Dorado MDF employees are a dedicated group and Roseburg is a world-class MDF producer. PotlatchDeltic will give full focus to the two sawmills and half a million acres of excellent timberland acquired in the 2018 merger of Potlatch and Deltic,” said Mike Covey CEO for PotlatchDeltic.