Norbord and Ainsworth to merge
9 December 2014Norbord and Ainsworth Lumber have signed an agreement to merge, creating one of the largest OSB manufacturers in the world.
Under the agreement, Norbord will acquire all the outstanding common shares of Ainsworth. Brookfield Asset Management currently has a 55% stake in Ainsworth and 52% in Norbord and will have a 53% share of the combined company.
The deal is expected to be completed in the first quarter of next year.
The combined company will operate under the Norbord name and leadership of Norbord president and CEO Peter Wijnbergen. Ainsworth’s president and CEO, Jim Lake, will stay on as an adviser for six months.
Mr Wijnbergen said the merger united the companies in “a common vision of enhanced service to our customers and growth in North America, Europe and Asia”.
“Norbord and Ainsworth are each low-cost producers in their respective regions, and with our complementary operations and a more diverse range of speciality products, we will be better able to serve our customers,” he said.
Mr Lake said by joining Norbord, Ainsworth would be able to “leverage its commitment to low-cost operational excellence to expand and improve” its products and customer service.
In 2013 Louisiana-Pacific announced a US$1.1bn takeover of Ainsworth but the deal collapsed in May this year, with both companies blaming regulatory bodies for imposing onerous conditions.
