Founder Sells ldaho Timber

Idaho Timber Corp., Boise, Id., has been acquired by New York buyout firm Leucadia National Corp. for an undisclosed amount.

Chairman Larry Williams, who founded Idaho Timber in 1979, sold his majority interest in the company and has retired after 35 years in the industry.

Chief executive officer Ted Ellis will stay on along with most of the current management operating team. including newly promoted v.p. of finance Scott Beechie. Also retiring are Lake City, Fl.-based southern v.p. Mike Johnson after 30 years in the business and v.p./chief financial offi- cer Bryant Rudd after I 1 years.

Idaho Timber enjoyed record sales of $420 million in 2OO4 and in 2005 produced 800 million bd. ft. of lumber. Operations include sawmills in Troy, Id.; Espafrola, N.M.; Carthage, Ar., and Wiergate, Tx., and manufacturing plants with sales offices in Boise and Weiser, Id.; Whitefish, Mt.; Lake City, Fl.; Halstead, Ks.; Fort Worth, Tx.

Leucadia is a diversified holding company with substantial assets in real estate, manufacturing, and banking and lending, with smaller holdings in wine producing and gold mining.

Boise Cascade Ditches IPO

Boise Cascade has cancelled its proposed $400 million initial public stock offering, citing adverse market conditions.

The company had hoped to sell 16 million shares and begin trading on the New York Stock Exchange under the symbol "BCC." Yet days before the IPO, Boise lowered the estimated price by roughly 30%a to a range of $17 to $19 per share.

"We concluded that it was in the best interest ofour existing shareholders not to proceed in the current climate," said c.e.o. Tom Stephens.

The business was acquired eight months ago for $3.7 billion by private equity firm Madison Dearborn Part- ners LLC, which promptly sold off its timberlands.

While the decision to scrap the IPO was a difficult one, Stephens said Boise would now "rededicate our efforts to running our businesses and executing our business strategies."

Fire Claims Manke's Dry Kiln

Manke Lumber, Sumner, Wa., sustained $500,000 in damage from a May 23 fire at its dry kiln building lil I'l l,,r-r Iirr 'rL,l, ,.'.r I \ l. Iir,, ,lit'r li.rrrr .,,,rr.1

The fire broke out about 4:50 a.m., and fire crews did not begin arriving for more than I I minutes. Emergency dispatchers first thought the 9ll call came from Manke's headquarters in Tacoma, Wa., and mistakenly sent firefighters there.

More than 50 firefighters needed 90 minutes to control the blaze. but managed to keep flames from spreading to nearby piles of lumber.

One large bay of the metal kiln building- containing gas-fired dryers-burned to the ground. Still, the on-site sawmill was operating later in the day.

No injuries were reported, and investigators are trying to determine the cause of the fire.

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Bloedorn Scouts Colorado

After a year of negotiating to build a new store fell through, Bloedorn Lumber Co. is now looking for a new site to replace its outgrown Loveland, Co., yard.

Bloedorn had hoped to rezone 3 acres to construct a larser store and

Roofing Up Only Slightly

U.S. roofing demand is expected to increase l.4%o annually through 2008 to 259 million squares, with its value to rise 3.5Vo yearly to $12.5 billion, according to a new study by Freedonia Group.

Among roofing materials, plastic and metal will enjoy the fastest growth, benefitting from a rebound in nonresidential markets.

Thermoplastic polyolefin roofing will continue its inroads against builrup and elastomeric roofing.

Another plastic roofing product that will see healthy gain is sprayapplied roofing, as advances in application technology boost usage.

Metal roofing will benefit from a rebound in industrial construction warehouse with rail spur. creating a regional lumber hub that could also serve other Bloedorn locations. The company backed out due to the project's expected cost, which would have included steep, city-mandated capital expansion fees.

Among the properties now being as well as continue its incursion into residential uses, where metal panels and shingles are being used as alternatives to roofing tile and asphalt shingles. considered is the old Deines Lumber yard, which closed seven years ago.

Asphalt shingles will remain the dominant roofing material, accounting for more than 6O7o of the total installed area in 2008. However, demand for asphalt shingles is projected to rise less than l%o annually, due to a sluggish outlook for residential roofing.

In addition to a weak new housing market, the reroofing segment will be limited by a smaller base of houses with shingles in need of replacement, since the late 1980s represented a period of declining numbers of housine starts.

"We have not signed any agreement on that or anything else," explained John Herbst, treasurer for the Torrington, Wy.-based chain. "We're just trying to find a bigger place."

Loveland is already home to a halfdozen lumber yards and a Lowe's Home Improvement Warehouse is coming to town this summer.

New Owners To Move Store

Bill and Syd Myers have agreed to sell Fortuna Hardware, Fortuna, Ca., to two fellow Ace Hardware owners who will relocate the newly-acquired business to the site of a vacated Safeway supermarket.

Taking over are Jerry King, owner of Hensel's Hardware & Gifts, Arcata, Ca., and Jack Rieke, owner of Shafer's Ace Hardware, Eureka, Ca., and Shafer's Lawn & Garden, Fortuna. Rieke will relocate his lawn and garden center to the new site, enlarging it to 7,000 sq. ft. In all, the new location will boast nearly 30,000 sq. ft.

The new owners will hold a grand opening later in the year.