Deltic Enters Agreement to Purchase Additional Membership Interest in
Del-Tin Fiber, LLC
EL DORADO, Ark. -- February 13, 2013
Deltic Timber Corporation (NYSE:DEL) has entered into an agreement to purchase
the 50 percent membership interest in Del-Tin Fiber, LLC currently owned by
TIN, Inc., a wholly owned subsidiary of Temple-Inland Inc., a wholly owned
subsidiary of International Paper Company, for a purchase price of $20
million. Upon completion of the transaction, the Company will hold 100 percent
of the membership interest in the Arkansas limited liability company, which
owns and operates a medium density fiberboard plant in El Dorado, Arkansas.
“Deltic Timber has owned 50 percent of the Del-Tin Fiber facility since the
completion of its construction in June 1998, and we are excited about the
opportunity to own the plant outright and utilize Deltic’s proven ability to
be very efficient operators of manufacturing facilities to improve operating
performance and efficiencies within this operation,” said Ray C. Dillon,
President and Chief Executive Officer. “This investment fits our strategy to
grow the assets of Deltic through strategic opportunistic acquisitions. When
this strategy is accomplished by an opportunity to grow through additional
ownership in a facility that is located here in El Dorado, Arkansas, in an
industry that we already know well, and in a plant in which our personnel have
been actively involved on a daily basis, the potential synergy should prove
accretive to Deltic’s financial performance. This acquisition also fits our
vertical integration strategy well since Del-Tin utilizes the residual
by-products generated from Deltic’s sawmill operations that result from their
production of dimension lumber from timber produced from our excellent fee
The $20 million aggregate purchase price consists of $5.156 million in cash
and an assumption of TIN, Inc.’s $14.844 million in debt guarantees associated
with Union County, Arkansas Taxable Industrial Development Revenue Bonds that
were issued in 1998 to finance the construction of the Del-Tin Fiber facility.
The bonds have a maturity date of December 1, 2027.
Deltic Timber Corporation is a vertically integrated natural resources company
focused on the efficient and environmentally responsible management of its
land holdings. The Company owns over 450,000 acres of timberland, operates two
sawmills, and is engaged in real estate development. Headquartered in El
Dorado, Arkansas, the Company’s operations are located primarily in Arkansas
and north Louisiana.
Deltic Timber Corporation
Kenneth D. Mann, 870-881-6432
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