MARKHAM, CANADA – Arauco has reached an agreement with Flakeboard Co. Ltd. to acquire its seven composite panel production facilities in Canada and the United States. The agreement, announced June 8, is expected to be finalized during the second half of 2012.
According to Arauco, the transaction is valued at $242.5 million. The seven Flakeboard mills are located in Oregon, Arkansas, South Carolina, New Brunswick and Ontario.
Arauco said the Flakeboard facilities, as well as the former Moncure, NC, Uniboard mill it acquired in January, will operate under the Flakeboard name. Flakeboard's senior management team will integrate and manage the operations, with Kelly Shotbolt heading the North American operations.
In a statement, Flakeboard President and CEO, Kelly Shotbolt said, “We are extremely excited about our planned integration with Arauco and specifically about the opportunities that the new ownership structure brings for the larger company, our customers, our combined employees, and the communities in which we operate.”
In addition to Arauco's purchase of the Uniboard particleboard and MDF mill earlier this year, Arauco also announced a joint venture with Unilin to manufacture and market laminate flooring in Brazil.
Incorporated in 1960, the privately held Flakeboard has grown from a pilot plant to a multi-site, producer of composite panels and thermally fused melamine panels for use in furniture, cabinets and casegoods.
Based in Santiago, Chile, Arauco is a diversfied forest products company, producing plywood, millwork and mouldings, MDF panels, lumber and pulp. The company's subsidiary - Arauco USA - is based in Atlanta, GA.