Louisiana-Pacific Corporation (LP) (NYSE:LPX) has signed an agreement to acquire Vancouver-headquartered Ainsworth Lumber Co. Ltd. (TSX:ANS) for $1.1 billion, the two companies announced September 4.
LP will acquire all of Ainsworth’s common shares, with total consideration consisting of approximately 52% cash and 48% LP common shares.
“This is an excellent transaction that makes LP more valuable for our customers and our shareholders,” said LP CEO Curt Stevens.
“Ainsworth has very high quality assets and provides us with an expanded suite of strand-based products and technologies, additional access to key international growth markets, particularly in Asia, and enhanced scale and efficiencies in North America.”
The transaction has received unanimous support from Ainsworth’s board of directors. The deal requires approval of two-thirds of Ainsworth’s shareholders, who will be voting on the transaction in October 2013.
Ainsworth is a manufacturer of oriented strand board with facilities in British Columbia, Alberta and Ontario. Nashville-based LP manufactures engineered wood building materials in the United States, Canada, Chile and Brazil.
