ElDorado Chamber of Commerce issued the following announcement on Feb. 18.
Roseburg Forest Products has completed the purchase of PotlatchDeltic subsidiary Del-Tin Fiber LLC, including its medium density fiberboard (MDF) plant here in El Dorado.
In December, Roseburg and PotlatchDeltic made an agreement in principle that they would make the transaction after getting the necessary regulatory approval.
“Roseburg is delighted at the successful completion of our purchase of El Dorado MDF,” said Rebecca Taylor, Roseburg corporate communications director. “It is a highly desirable facility staffed by a team of skilled and talented employees.”
Representatives from Roseburg visited the plant earlier last week to manage the change in ownership. She said plant staff are currently working to clean, paint and fix up the facility.
“Our IT team has worked sleepless nights transferring the plant to Roseburg systems. Our human resources team has provided welcome orientation to all employees,” she said. “The Roseburg sign went up [Thursday], which was an exciting moment. Our first truckload of panels were shipped out under Roseburg ownership that same day.”
Taylor said that the plant’s facilities are impressive; however, Roseburg intends to continue to build those facilities up.
“El Dorado MDF is already a well run and profitable plant, but we see untapped potential,” she said. “We will be investing several million dollars in upgrades to the facility and its equipment to ensure efficiency and consistent product quality. We want the El Dorado MDF employees to have the tools they need to make the best product possible.”
The El Dorado MDF plant will make the third point in what Taylor called an “operational triangle” in an earlier interview. Roseburg has acquired two other MDF plants in the past three years, located in eastern Canada and Oregon.
“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 Mulberry said in a press release.
“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,” he continued.
Taylor also noted that El Dorado MDF is near one of Roseburg’s composites plants located in Simsboro, Louisiana, that is already a customer of the El Dorado plant.
Roseburg is a wood-products company; in addition to their MDF plants, they also operate particleboard mills, composites plants and lumber mills among other wood-product producing enterprises.
The purchase price for the MDF plant was $92 million, with $63 million paid in cash and the rest through Roseburg’s assumption of revenue bond obligations, per Mark Benson, vice president of public affairs at PotlatchDeltic and Anna Torma, director of public affairs for PotlatchDeltic.
“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 million acres of excellent timberland acquired in the 2018 merger of Potlatch and Deltic,” said PotlatchDeltic CEO Mike Covey in a press release.
Taylor said Roseburg is a community-oriented company. According to their website, Roesburg tries to participate in various community fundraisers and other outreach efforts, such as an annual Employee Giving Campaign, their Sons & Daughters Scholarship Program and various volunteer efforts.
“Roseburg bought this plant to run it,” Taylor said. “The region’s long history in the wood products industry, combined with its bountiful supple of wood fiber, was a definite draw. Combine that with the quality of the people and you can see why Roseburg is excited to join the community.”
Original source can be found here.
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