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Louisiana-Pacific Corp. (NYSE: LPX), Nashville, TN, has agreed to acquire the 50 percent share in the Peace Valley Oriented Strand Board (OSB) joint venture in Fort St. John, British Columbia, currently owned by Vancouver-based Canfor Corp. (TSX: CFP), for C$75 million (US$75.5 million) . By completing this acquisition, LP will become sole owner of the Peace Valley OSB mill.
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The purchase price includes working capital, and 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. The Peace Valley mill has an annual production capacity of 820 million square feet of OSB, and LP already sells 100 percent of the product made there under the LP brand.