Boise Cascade entered into a purchase agreement Tuesday with Woodgrain Millwork to sell three of its facilities in Northeast Oregon.

According to a press release posted to the Nasdaq website, Woodgrain has agreed to take over the Boise Cascade lumber mills in La Grande and Pilot Rock and the particleboard plant in Island City. This transaction does not include the plywood mill or the powerhouse and log utilization center in Elgin.

“The sale to Woodgrain allows us to further focus on our veneer-based engineered wood products and plywood businesses,” said Mike Brown, senior vice president of operations, Boise Cascade Wood Products division, in the release. “Woodgrain is a family-owned company with a solid reputation in the industry. The products manufactured at these Northeast Oregon facilities are a good fit with their business strategy.”

Lisa Chapman, Boise Cascade media contact, told The Observer on Tuesday the sale will impact 109 employees in Union County. A total of 256 employees, including those in management, work in the three facilities.

The due diligence process, which looks at Boise Cascade’s assets and liabilities, will take approximately 50 to 60 days, Chapman said. After that, the transaction will be completed.

A spokesperson from Woodgrain was not available by press time.

Chapman said she was not sure if Woodgrain intended to have layoffs.

“We’re not privy to what Woodgrain would do once they take over,” Chapman said. “Woodgrain will be meeting with existing managers and employees within that time frame. The operating plan will be determined by Woodgrain once they take possession of the mills, so we cannot speculate what, if any, changes will be made to the employment structure.”

Chapman added Woodgrain, which is based in Fruitland, Idaho, is a family-owned and -operated company that has served its community for 60 years.

See more in Wednesday's edition of The Observer.

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