MARKHAM, ON, CANADA - Today Flakeboard America Limited, a US subsidiary of Arauco, has agreed to buy the western US panel assets of SierraPine, a California limited partnership, consisting of two particleboard plants located in California and Oregon, and an MDF plant in Oregon.

Upon completion of the acquisition, the Arauco plants in North America will have an installed panel capacity of 2 billion feet sq. ft. (¾" basis) or 3.5 million cubic meters, adding to the capacity of the composite panel plants that Arauco holds in Brazil, Argentina and Chile.

According to Flakeboard President, Kelly Shotbolt, "We are extremely excited about our proposed purchase of SierraPine and specifically the benefits that additional western facilities add in terms of product offering, manufacturing locations, and employee experience. Combined with existing Flakeboard mills, the transaction will bring new opportunities for our customers, our combined employees, and the communities in which we operate."

The two companies are targeting a closing during the first quarter of 2014. The transaction is subject to customary conditions, including regulatory approvals.

Source: Flakeboard/Arauco