Portland-based firm set to acquire Wallowa small diameter log mill

Community Smallwood Solutions LLC, a small-diameter log mill in Wallowa, may soon be operating under new management.

Last week, the mill announced that Portland-based Upstream 21 plans to acquire the mill, which produces posts and poles and bundled firewood.

Ben Henson, Community Smallwood Solutions general manager and chief executive officer, said he thinks the change in ownership will help the mill grow.

"The local ownership sees this sale a much needed relief from the continued erosion of forest products jobs in Wallowa County. It demonstrates what a group of determined people, who want to make a difference in their commitment, can accomplish," Henson said.

Upstream 21 was established in 2004. According to its Web site, the company was formed to put financial and other resources to work in successful, privately held small companies and help them improve their financial, social and environmental performance.

Henson said Upstream 21 has provided advice and input for the Wallowa mill in the past. He said the change in ownership will result in an infusion of capital and other resources that may open new markets.

Community Smallwood Solutions was established in 2003 by a group of 12 investors with ties to Wallowa County.

The group was headed by Community Solutions, Inc, the for-profit arm of Wallowa Resources. Four new investors have joined since then.

Upstream 21 is seeking to acquire businesses located in Oregon, Washington, Idaho , Montana, California and British Columbia, but will consider business in other geographic areas.

The Web site said Upstream 21's typical acquisition is a business with annual sales in the range of $1-15 million.

Other criteria include positive financial performance over at least the past two fiscal years and reasonable projections for similar performance in the future.