Boise Cascade Adding Distribution Centers in Two New Markets

Rhea-AI Summary

Boise Cascade’s Building Materials Distribution (BMD) division has expanded its distribution capacity through new acquisitions in Walterboro, SC, and Hondo, TX. The 45-acre site in Walterboro will serve markets around Charleston and Myrtle Beach, while the 34-acre site in Hondo will enhance distribution capabilities in Texas, serving areas including San Antonio and Austin. These new facilities aim to improve customer service and product offerings in high-growth markets. Construction is expected to commence shortly, reinforcing the company's growth strategy in engineered wood products and building materials.

Positive

• Acquisition of 45 acres in Walterboro, SC, and 34 acres in Hondo, TX, for new distribution centers.
• Expansion into high-growth markets enhances customer service capabilities.
• Increased diversification of product offerings, including engineered wood products and building materials.

Negative

• Construction timelines and budgets remain uncertain, posing potential risks to operational efficiency.

BOISE, Idaho--(BUSINESS WIRE)-- Boise Cascade’s Building Materials Distribution (BMD) division today announced the expansion of its distribution capacity in two markets.

The Company finalized the acquisition of 45-acres in Walterboro, SC, to build a new distribution facility. Located approximately 45 miles west of Charleston, the property will be Boise Cascade’s first distribution center in the state. The location is rail-served and will help better serve customers in Myrtle Beach, Charleston, and Columbia, SC, as well as Savannah, GA. The BMD division currently services these markets through its facilities in Greensboro, NC, and Atlanta, GA.

The Company also closed on the purchase of a 34-acre land parcel in Hondo, Texas to build another new distribution facility. Located approximately 40 miles west of San Antonio, TX, this property will be the third Boise Cascade distribution center in the state, along with its two door shops in Houston and Dallas. The property is rail-served and will help serve customers in Austin, San Antonio, Corpus Christi, and the Rio Grande Valley.

“Consistent with our strategy, these investments demonstrate our commitment to our customers and supplier partners in several high-growth markets,” said Jeff Strom, BMD Executive Vice President. “We are thrilled to increase our diversification of product offerings. This will allow us to expand in engineered wood products, leading brands of general line building materials, as well as lumber and panels products.”

Jim Wickham, Vice President of Eastern Operations, commented, “We are very excited to expand our footprint into these markets. This will help us grow in these geographies and also provide deeper penetration in the local market for the facilities that are currently serving these areas, allowing us to be closer to our customers.”

Construction is expected to begin soon.

About Boise Cascade

Boise Cascade Company is one of the largest producers of engineered wood products and plywood in North America and a leading U.S. wholesale distributor of building products. For more information, please visit our website at www.bc.com.

Forward-Looking Statements

This press release includes statements about our expectations of future performance that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding the expected benefits of our new distribution centers and the projected timeline for production. Statements preceded or followed by, or that otherwise include, the words "believes," "expects," "anticipates," "intends," "project," "estimates," "plans," "forecast," "is likely to," and similar expressions or future or conditional verbs such as "will," "may," "would," "should," and "could" are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The accuracy of such statements is subject to a number of risks, uncertainties, and assumptions that could cause our actual results to differ materially from those projected, including, but not limited to, our ability to complete construction of the facilities within our timing and budget expectations, prices for building products, changes in the competitive position of our products, commodity input costs, the effect of general economic conditions, the effect of COVID-19 and related variants, mortgage rates and availability, housing demand, housing vacancy rates, governmental regulations, unforeseen production disruptions, as well as natural disasters. These and other factors that could cause actual results to differ materially from such forward-looking statements are discussed in greater detail in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of this press release. We undertake no obligation to revise them in light of new information. Finally, we undertake no obligation to review or confirm analyst expectations or estimates that might be derived from this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221214005893/en/

Media contact: Lisa Tschampl, 208-384-6552

Investor contact: Kelly Hibbs, 208-384-3638

Source: Boise Cascade Company

FAQ

What new facilities is Boise Cascade building in 2023?

Boise Cascade is building new distribution facilities in Walterboro, SC, and Hondo, TX.

How will the new distribution centers impact Boise Cascade's operations?

The new centers will improve service to customers in Charleston, Myrtle Beach, and San Antonio, expanding Boise Cascade's market reach.

What is the significance of the acquisitions by Boise Cascade?

The acquisitions signify Boise Cascade's commitment to growth in high-demand markets and improving product offerings.

What areas will the Walterboro facility serve?

The Walterboro facility will serve customers in Myrtle Beach, Charleston, Columbia, SC, and Savannah, GA.

What challenges could affect the new distribution centers?

Challenges include construction delays and budget uncertainties that might impact operational timelines.