Boise Cascade Concludes Strategic Acquisition of Burmingham Business

SEATTLE (Scrap Monster): Boise, Idaho-headquartered Boise Cascade Company- the North American manufacturer of wood products and wholesale distributor of building materials announced that it has completed acquisition of Birmingham, Alabama-based American Lumber Distributors. Both the companies had reached an agreement in March this year.

The acquisition will augment Boise Cascade’s nationwide distribution network and significantly enhance its service capacity in the Southeast. The combined entity offers enhanced value to customers.

Commenting on the deal, Nick Stokes, executive vice president, Boise Cascade noted that the company is extremely pleased to welcome 50 new associates to its nationwide Building Materials Distribution (BMD) team. The company looks forward to better serve its customers with the expanded capacity, he added.

Meantime, Boise Cascade reported net income of $11.4 million on sales of $1.0 billion during the first quarter of the current year. Low wood products pricing and adverse weather conditions badly impacted the results during the quarter. The wood products segment income declined sharply from $26.1 million in Q1 last year to $11.6 million in Q1 2019.

The BMD segment income too witnessed notable decline from $32.4 million to $17.5 million over the previous year, mainly on the back of lower average commodity prices and lower sales volume. In addition, the selling and distribution expenses escalated during the quarter.

Boise Cascade expects the slower demand growth situation to persist during the rest of 2019. The planned capital spending is expected to result in improved efficiency of its veneer production facilities.