Suwanee Lumber Company
Sell, Hold, or Double-Down?
Blue Wolf is a New York-based private equity firm, specializing in operational turnarounds and maximizing value in complex situations. In 2013, they acquired Suwanee Lumber Company (SLC), a sawmill in Cross City, Florida, focusing on southern yellow pine. Blue Wolf addressed environmental violations and boosted the mill's production, enhancing its market appeal.
In 2016, Blue Wolf faced a key strategic decision:
- Sell SLC: Capitalize on SLC's improved operations and earnings by selling it.
- Continue as Standalone: Maintain SLC's operations independently to leverage its potential further.
- Expand through Acquisition: Add to their lumber business by restarting the idle Caddo River mill in Glenwood, Arkansas.