Building materials distributor and manufacturer Boise Cascade announced Nov. 5 that it plans to acquire two California distribution facilities from Taiga Building Products, expanding its presence in the state.

The facilities in Rocklin and Sanger serve customers across Northern and Central California, the California Coast and Northern Nevada. Financial terms were not disclosed. The transaction is expected to close by mid-November.

Boise, ID-based Boise Cascade currently operates 39 U.S. distribution locations. The company said the additions will increase distribution capacity, broaden its general line product capabilities and support its recently expanded partnership with James Hardie.

“This acquisition is a great fit for our business and an exciting next step in our growth strategy,” said Jo Barney, Executive Vice President of Boise Cascade’s Building Materials Distribution division.

Taiga said the transaction is structured as an asset sale covering inventory, equipment, rolling stock and other operating assets. Boise Cascade plans to continue operating both facilities. Taiga’s other locations and products in Canada and the U.S. are excluded from the deal.

The acquisition announcement came three days after Boise Cascade reported higher third-quarter sales and earnings, with revenue growth in both business segments.

Companywide sales increased 8% year-over-year to $1.80 billion in the quarter ended Sept. 30. Net income rose 67% to $36.4 million from $21.8 million a year earlier, while adjusted EBITDA increased 32% to $98.5 million.

Building Materials Distribution sales grew 7% to $1.67 billion, reflecting a 5% increase in selling prices and 2% volume growth. Commodity product sales increased 15%, general line sales rose 4% and engineered wood products sales edged up 1%.

The distribution segment’s income nevertheless declined 6% to $51.3 million as higher selling and distribution expenses outweighed an increase in gross profit. Segment EBITDA fell 4% to $66.9 million, with EBITDA margin narrowing to 4.0% from 4.5% a year earlier.

Wood Products sales, including sales to the distribution segment, increased 16% to $461.2 million, primarily driven by higher plywood prices and engineered wood products volumes. Segment income improved to $16.1 million from a $12.1 million loss, while EBITDA increased to $42.7 million from $14.5 million.

Looking ahead, Boise Cascade projected fourth-quarter companywide EBITDA of $32-54 million, including $35-45 million from Building Materials Distribution. Its earnings presentation showed the distribution segment’s early fourth-quarter daily sales pace running approximately 10% below the third-quarter average, with seasonal factors and supplier transitions expected to contribute to further moderation.