Boise Cascade Co. has reached an agreement to sell a Moncure, North Carolina, plywood mill employing approximately 150 people for an undisclosed amount.

Boise, Idaho-based Boise Cascade, one of the largest producers of engineered wood products and plywood in North America, is selling the mill to an affiliate of Southern Veneer Products.

Founded in 1998, Southern Veneer, located in Fitzgerald, Georgia, is a privately held manufacturer of plywood, veneer and wood by-products. The mill is in southeastern Chatham County in the middle of North Carolina.

“Moncure primarily supplies hardwood plywood to the furniture panel sector. The acquisition of this facility more closely aligns with Southern Veneer’s business strategy,” said Mike Brown, executive vice president of Boise Cascade’s Wood Products division, in a statement.

“We believe this sale provides the best long-term option for continuing to serve the furniture market and sustain employment at the mill into the future,” Brown said. “Southern has been a proven and trusted veneer supplier for Boise Cascade for more than 10 years. ”

The sale is contingent upon the results of the due diligence process, which is expected to be completed in the first quarter.

Boise Cascade will record a pre-tax charge of approximately $25 million in the fourth quarter of 2018 as a result of writing down the carrying value of the Moncure facility and the associated inventories, as well as anticipated expenses related to the sale to Southern.

“We are excited to enter into this agreement with Boise Cascade as the addition of the Moncure facility is a continuation of our plan to expand our geographic presence and build a diversified portfolio of world class assets,” said Ken Adams, president of Southern Veneer, in a statement.

“We intend to invest in equipment upgrades to make full use of the production capacity at the plant,” added Adams. “We look forward to welcoming the employees onto our team and working with the plant’s suppliers and customers.”

Boise Cascade’s stock closed Thursday at $28.94.