Boise sells off timberland for $1.65b

22 December 2004 – Boise (ID): Boise Cascade LLC is to sell approximately 2.2 million acres of timberland located across the Pacific Northwest, Louisiana, Alabama and Minnesota, to Forest Capital Partners LLC for $1.65 billion in cash.

As part of the agreement, which will be used to reduce Boise’s outstanding debts, Forest Capital will continue to supply fibre to Boise’s pulp and paper mills and wood products manufacturing facilities.

Tom Stephens, CEO of Boise, said: "This sale, which is in line with our strategy of rapid debt reduction, will significantly strengthen our balance sheet and allow us to focus on our paper, wood products and distribution businesses."

The deal is expected to close in the Q1 of 2005.