Boise Cascade sets its sights on positive IPO

It plans to raise up to $200 million from its offer, SEC filing says

Boise Cascade said Thursday it plans to raise up to $200 million in an initial public offering, according to documents filed with the Securities and Exchange Commission.

The Idaho-headquartered wood products and building material company is owned by Madison Dearborn Partners, a private equity firm based in Chicago, which owns a variety of companies, including LA Fitness, Univision Communications and Yankee Candle.

Boise Cascade operates a plywood plant in Medford, and engineered wood products and veneer mills in White City — totaling nearly 600 employees — and is gearing up to resume operations at a plywood plant in White City on Antelope Road. During the 12 months ending Sept. 30, the company had revenue of $139 million.

In its SEC filing, Boise said it expects to use a substantial portion of the net proceeds for general corporate purposes, but left the door open to other areas.

"We intend to invest the proceeds in a variety of capital preservation investments, including short-term, investment-grade and interest-bearing instruments," the company's filing said.

In July of 2004, Madison Dearborn acquired the company and a year later it announced an IPO that failed to catch on.

Ultimately, the company's paper products division was sold off, leaving the wood products and building material unit on its own.

In its filing, Boise said it was well-positioned for a housing recovery.

"From 2005 to 2011, we invested $270 million to upgrade and maintain our facilities," the filing said. "We expect to make further capital investments in cost and operational improvements, primarily related to internal veneer production, which will further leverage our competitive position and allow us to capture growth opportunities."

In October, Boise's finance department was busy, first redeeming $75 million worth of senior subordinated notes on Oct. 15 and then issuing $250 million worth of notes due in 2020.

During 2010, the company spent $35.8 million on property and equipment at its Medford plant as it installed a new veneer dryer

"We expect the Medford veneer dryer to reduce our costs through higher productivity and reduced seasonal purchases of dry veneer," the filing said.

Reach reporter Greg Stiles at 541-776-4463 or by email at

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