Spokane, Washington, USA 21 December 2018 -- (GLOBE NEWSWIRE) -- PotlatchDeltic Corporation (NASDAQ: PCH) today announced an agreement to sell its El Dorado Medium Density Fiberboard ("MDF") business to Roseburg Forest Products ("Roseburg") 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.
PotlatchDeltic Corporation (NASDAQ:PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a medium density fiberboard plant, a residential and commercial real estate development business and a rural timberland land sales program. PotlatchDeltic, a leader in sustainable forest practices, is dedicated to long-term stewardship and sustainable management of its timber resources. More information can be found at www.potlatchdeltic.com.