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LP Building Solutions (LP) (NYSE: LPX) today announced an agreement with Pacific Woodtech to acquire LP’s Engineered Wood Products (EWP) business for $210 million. The acquisition includes LP’s laminate veneer and I-joist manufacturing facilities in Wilmington, NC; Red Bluff, California; and Golden, British Columbia, Canada, the associated timber license assets and the SolidStart® brand. Completion of this transaction is subject to customary closing conditions and regulatory reviews and is expected to occur in the third quarter of 2022.
“We believe Pacific Woodtech is well positioned to invest in and grow the SolidStart brand, and its acquisition of LP’s EWP business marks another important step in LP’s ongoing strategic transformation,” said Brad Southern, President and CEO of LP. “We will work with Pacific Woodtech to ensure a smooth transition for our EWP employees, customers and suppliers. I would like to express my sincere thanks to the entire EWP team for their patience and professionalism throughout this process. “The addition of EWP facilities in Golden, Wilmington and Red Bluff to Pacific Woodtech’s existing EWP business propels our business to new growth,” said Jim Enright, President and Chief Executive Officer. management of Pacific Woodtech “We aim to drive positive change at the cutting edge of engineered wood products, and this acquisition will provide a more streamlined and focused EWP resource for the industry. We are committed to making this transition a seamless transition, which enables the retention and care of current employees, customers and suppliers and strengthens our leadership position in the EWP market in the future.”
LP’s financial advisor is UBS Investment Bank. LP’s legal advisors are Troutman Pepper and Fasken Martineau DuMoulin LLP.