NASHVILLE, TN. & VANCOUVER, British Columbia -- Louisiana-Pacific Corporation and Ainsworth Lumber Co. Ltd. announced that they have signed a definitive agreement under which LP will acquire all of the outstanding common shares of Ainsworth for a total consideration which equates to C$3.76 per Ainsworth common share, based on the closing price of LP common shares on September 3, 2013. The proposed transaction is valued at approximately $1.1 billion.
Ainsworth is a leading manufacturer and marketer of oriented strand board with a focus on value-added specialty products for markets in North America and Asia. Ainsworth's four OSB manufacturing facilities, located in Alberta, British Columbia and Ontario, have a combined annual capacity of 2.5 billion square feet (3/8-inch basis), with the potential to increase capacity to 3.1 billion square feet (3/8-inch basis) with the expansion at Ainsworth's mill in Grande Prairie, Alberta.
"This is an excellent transaction that makes LP more valuable for our customers and our shareholders," said Curt Stevens, LP's CEO. "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. We have great respect for Ainsworth and its people, and we intend to take the best of both companies to create a leading provider of strand-based products that is well positioned to meet the evolving needs of customers in North America and abroad."
Added Mr. Stevens: "The APA consensus projection for U.S. housing starts for the full year 2013 is 957,000, an increase of 23% from 2012. For 2014, the consensus projection is approximately 1.2 million starts. We believe the acquisition of Ainsworth provides LP with greater flexibility and exposure to this recovery."
Ainsworth's CEO Jim Lake said, "This transaction provides immediate value and liquidity to our shareholders as well as the opportunity to participate in LP's continued growth as a global leader in strand-based products and technologies. For our people, this will bring even greater financial strength to the business and the opportunity to become an important part of a well-resourced, innovative company with an excellent operational track record and an uncompromising commitment to safety. This is a positive step forward for Ainsworth, our people, our customers and the communities in which we operate."