Oregon-based Roseburg to acquire Pembroke MDF
Oregon-based Roseburg Forest Products recently reached an agreement in principle with Pembroke MDF, Inc. to purchase Pembroke’s medium density fiberboard (MDF) and molding production facilities located in Laurentian Valley. According to a press release issued by the company, upon final due diligence and board of director approval, the parties expect the sale to close by April 9, 2018.
The acquisition will be Roseburg's first international purchase and will continue the company's expansion throughout North America. Roseburg is currently building an engineered wood products plant in Chester, South Carolina, and recently acquired 158,000 acres of timberland in Virginia and North Carolina.
"The Pembroke plant and its employees present untapped potential that can be used to better serve existing and future customers of our innovative and versatile MDF product line," Mark Avery, Roseburg senior vice president of industrial products and national accounts, said in a release statement on the company’s website. "It's an exciting opportunity for Roseburg to move into the northeastern region and further diversify our operations and meet demand."
Roseburg currently owns and operates an MDF plant in Medford, Oregon, which produces the company’s Arreis®, Medite®, Medex®, Permacore® and Fibrlite® product lines.
"The addition of the Pembroke MDF plant means Roseburg customers will have access to a broader portfolio of products from a company with a demonstrated, long-term commitment to the industry," commented Jim Buffington, Roseburg's business director for industrial products.
"While this deal represents an excellent strategic opportunity for the company, it also offers Pembroke employees and suppliers the promise of stability and consistency provided by Roseburg's large manufacturing enterprise," Roseburg president and CEO Grady Mulbery said in the news release announcing the agreement in principal . "This is a win-win for everyone involved, and we look forward to what the future will bring."
MDF Pembroke first opened in 1997 as ATC Panels but the plant was shut down in November 2006 after the company had been forced to do so because of a perfect storm of lessening demand for fibreboard, increasing costs for wood fibre and a steep increase in the price of electricity. Pembroke MDF restarted operations in 2014 as the demand for medium density fibre has increased in national and international markets.
With files from Sean Chase