Madison Dearborn in $1.65bn timberland sale

In the largest cash timberland deal in US history, Madison Dearborn is unloading $1.65bn in timberland assets from portfolio company Boise Cascade, which the Chicago buyout firm bought earlier this year for $3.7bn.

Madison Dearborn Partners, the Chicago buyout firm, has reportedly agreed to sell roughly 2.2 million acres of US timberland currently owned by portfolio company Boise Cascade LLC to Forest Capital Partners, based in Boston.

The size of the deal is reported to be $1.65 billion (€1.22 billion), all in cash, making it the largest such timberland transaction in US history.

Madison Dearborn acquired Boise Cascade in November from office supply giant OfficeMax for $3.7 billion.

Boise Cascade makes plywood, lumber, particleboard and wood products, as well as paper. Going forward, the company will contract with Forest Capital to supply wood for its products.

The timberland assets are primarily in the Pacific Northwest, Louisiana, Alabama and Minnesota. The trees are a mix of aspen, balsam firm, black spruce, cedar and ash.

In 2002, Madison Dearborn acquired Irish packaging giant Jefferson Smurfit for €3.8 billion.