Roseburg to acquire MDF plant in Arkansas

Oregon-based Roseburg Forest Products reached an agreement in principle with PotlatchDeltic Corp. to purchase the assets of its subsidiary Del-Tin Fiber LLC, including its medium density fiberboard (MDF) plant located in El Dorado, Arkansas, Roseburg announced. The parties expect the sale to close in the first quarter of 2019 after required regulatory approval. Roseburg will pay for El Dorado MDF approximately $92 million, consisting of $63 million in cash and assumption of $29 million of revenue bond obligations.The El Dorado MDF plant will continue to operate independently of Roseburg until the transaction closes. Upon closing, the acquisition will be Roseburg's third MDF plant purchase in three years. The company acquired Pembroke MDF in eastern Ontario, Canada, in early 2018, and an MDF plant in Medford, Ore., in 2015.

Roseburg currently produces the Arreis®, Medite®, Medex®, Permacore® and Fibrlite® product lines. The EL Dorado MDF plant was built in 1998 and features a 9-foot-wide Kusters continuous press.

"The culture of the El Dorado plant fits Roseburg well, not only from a sales and marketing standpoint, but also from structure and values perspectives," Jim Buffington, Roseburg's Business Director for Industrial Products, said. "As a company, we are committed to the composites business in North America, and look forward to welcoming the El Dorado plant and its team members to our organization."