LP completes purchase of Canfor’s share in Peace Valley OSB joint venture
NASHVILLE, Tenn.--(BUSINESS WIRE)-- Louisiana-Pacific Corporation (LPX) announced today that it has completed the purchase of the 50 percent share of Canfor Corporation (TSX: CFP) in the Peace Valley Oriented Strand Board (OSB) joint venture in Fort St. John, British Columbia.
By completing this acquisition, LP has become the sole owner of the Peace Valley OSB mill.
The Peace Valley mill is a great operation, LP CEO Curt Stevens said. It has been part of our OSB strategy since 2006 and it will play an important role as the housing market continues to rebound.
OSB made in Peace Valley has always carried the LP brand, so customers will see no change in product quality or service.
The partnership between LP and Canfor (CFPZF.PK) was successful and productive, Stevens said. We look forward to continuing our relationship as Canfor manages the Peace Valley mills fiber resources into the future.
The Peace Valley mill has an annual production capacity of 820 million square feet of OSB. It currently operates four shifts.
The initial purchase price is approximately $77 million CDN including working capital. In addition, Canfor may receive additional annual consideration over a three year period based on Peace Valley OSBs trailing twelve-month EBITDA.
APA -- The Engineered Wood Association (APA) recently named the Peace Valley mill the safest in the industry among small operations. LP was named safest company among large operators.
Louisiana-Pacific Corporation is a leading manufacturer of quality engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction. From manufacturing facilities in the U.S., Canada, Chile and Brazil, LP products are sold to builders and homeowners through building materials distributors and dealers and retail home centers. Founded in 1973, LP is headquartered in Nashville, Tennessee and traded on the New York Stock Exchange under LPX. For more information, visit www.lpcorp.com.
Mary Cohn, 615-986-5886
Becky Barckley/Mike Kinney, 615-986-5600
Source: Louisiana-Pacific CorporationCopyright Business Wire 2013