Chequest and Pond Co. are set to merge into a single project in the Oregon Coast region.
Chequest Millwork, the parent company of Pond Cove millwork and Ag Millworks, announced the deal Wednesday.
The merged entity will be known as Chequest.
The proposed merger is expected to create about 200 jobs and a combined $1 billion in annual economic impact, according to the announcement.
CheQuest’s CEO, Mark Luehrs, said in a statement that the new entity will help to create a stronger business for its employees.
Chequest will retain the right to acquire existing assets and assets acquired through the merger, Luehs said.
The combined company will have the option to acquire new assets.
Cheque and debit card payments are the two main modes of payment for millworkers, according the merger announcement.
The merger will help Chequest build on the financial strength of its operations by offering a wider range of payment options to millworkers and more flexibility to meet changing needs, Loehs said in the announcement, which was also released by the state’s Department of Economic Development.
Luehs also said the merger will allow the combined company to improve its customer service and provide more choice and convenience to millworker customers.
The deal also would create jobs, he said.
The merger will take effect in 2019, according a statement from the Department of Labor.
The announcement comes after Chequest was criticized in March for hiring two white-collar workers who had no experience with millwork or other industries.
The deal with Ag MillWorks will allow Chequess to offer more jobs, Lues said.
In the past, the combined mill and ag companies have merged to create the same company, but they each have their own unique characteristics.
The two companies have struggled to win customers in the past as millworkers struggle to find jobs, said Lue.
The agreement with Chequest will give Chequests customers better service and allow them to provide a greater variety of products and services.
Chequer said the combined entity will provide greater financial security for Chequeness employees, as well as for Ag Mill Works.
The merged company will be able to access its bank accounts and payroll to the same extent as any other business, Loes said in his announcement.