This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

LP To Buy Canfor’s Share In Peace Valley OSB Joint Venture

Louisiana-Pacific Corporation (NYSE: LPX) announced today that it has entered into a Letter of Intent with Canfor Corporation (TSX: CFP) to acquire Canfor’s 50 percent share in the Peace Valley Oriented Strand Board (OSB) joint venture in Fort St. John, British Columbia. By completing this acquisition, LP will become the sole owner of the Peace Valley OSB mill.

“The Peace Valley mill has been a safe, productive and important part of our OSB strategy for the past seven years,” LP CEO Curt Stevens said. “The mill will continue to play an important role in LP as the housing market rebounds.”

The purchase price is estimated at $75 million CDN including working capital. In addition, Canfor may receive additional annual consideration over a three year period based on Peace Valley OSB’s annual EBITDA.

LP and Canfor currently jointly run the mill, with LP providing operational support while Canfor provides labor, fiber resource management and administrative services. LP already sells 100 percent of the product made there under the LP brand, so customers will see no change in product quality or service.

Once the agreement closes, Canfor will continue to provide fiber resource management and temporarily provide administrative services during the transition.

The completion of this transaction is expected to occur by the end of this year, but is subject to the parties agreeing to final terms and conditions, the completion of due diligence, obtaining necessary regulatory approvals and the execution of definitive agreements.

The Peace Valley mill has an annual production capacity of 820 million square feet of OSB. It currently operates three shifts with plans to add a fourth shift in the first quarter of 2013 depending on market conditions.

About LP

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.



1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs