Ainsworth’s four OSB mills, including the world’s largest single-line continuous OSB press at High Level, Alberta, would be joined with LP’s 11 OSB mills in North America and three in South America.
The combined company would have 18 OSB mills and a turnover of US$2.5bn. US-based LP said the acquisition would add high-quality assets to LP and provide it with an expanded range of strand-based products and technologies, as well as access to key international markets, particularly in Asia.
LP CEO Curt Stevens said the takeover deal should be seen in light of the 23% growth in US housing starts predicted for 2013, together with further growth projections for 2014. “We believe the acquisition of Ainsworth provides LP with greater flexibility and exposure to this recovery,” he said.
Ainsworth CEO Jim Lake said the takeover was a chance to participate in LP’s continued growth as a global leader in wood strand-based products and technologies.
LP has seven wholly-owned facilities – OSB mills, siding production factories and engineered wood products facilities in Canada, with one third of its North American workforce in the country.
As well as standard OSB panels, the Ainsworth range includes pointSix flooring, SteadiTred stair tread panels, Durastrand rimboard and Durastrand oriented strand lumber (OSL).
Ainsworth shareholders will vote on the takeover plan in October.
