Bohemia To Sell Some Of Its Assets In California

EUGENE, Ore. - Bohemia Inc. said it is selling its California mills and timberland to enhance the value of its stock and may ultimately sell some of its Oregon operations, as well.

``We believe that the financial interests of our shareholders will be best served by realization of the fair value of our assets,'' President Richard Tinney said yesterday.

The move appeared to be an effort to liquidate low-value mills and take advantage of high-value timberland at a time when the wood-products industry is squeezed by a slumping housing industry and a shortage of logs from federal land.

Bohemia, which was established in 1916, employs 2,700 workers in Oregon and California.

Tinney said the company's board decided to sell its Northern California operations immediately. Those operations include a fiberboard plant in Rocklin, a sawmill and co-generation plant in Lincoln, a sawmill in Grass Valley and 43,000 acres of timberland.

The California operations accounted for $85 million, or 24 percent, of total corporate sales for the fiscal year ended April 30, the company said.

Some or all of its Oregon operations may also be sold, although specific plans for this haven't been drawn up yet, Tinney said.

In Oregon, Bohemia has 42,000 acres of timberland, laminated-beam plants in Saginaw and Vaughn, a sawmill and veneer mill in Coburg and plywood plants in Drain and Vaughn. It also is leasing a sawmill in Gardiner from International Paper.

The company's stock was trading for about $9 a share before the announcement after hitting about $16 last spring in a company buy-back.

The announcement caught the industry by surprise, said Paul Ehinger, a Eugene consultant.

``No one thought they were a candidate for departure from the scene but, at the same time, they are under the same pressures everyone else is, scrambling for timber supply,'' he said.

Ehinger said it looked as if Bohemia was retreating to its home base in Eugene during hard times industrywide.

``If I were them, in California I would figure right now is the best it's going to be and it will go downhill from there,'' he said. ``If they are going to sell assets, the time to sell it is when they will get a good maximum realization from it.''

The sale of assets likely would go to reduce a debt load of about $73 million, an analyst said.