Adding worth with Louisiana-Pacific Corporation (NYSE:LPX)’s Ainsworth agreement


Dallas, Texas 09/06/2013 (Financialstrend) – Louisiana-Pacific Corporation (NYSE:LPX) and Ainsworth Lumber Co announced that they both have signed a definitive-agreement. Under the terms of this agreement, LPX will acquire all the outstanding Ainsworth common shares at C$3.76/common ANS share. This is based on the closing-price of the common shares on 3 September 2013.

This proposed transaction is valued at around $1.1 billion.

It is inclusive of the assumption of debt minus ANS’s estimated cash-balance. It represents a premium of 30% for the ANS shareholders to the closing-price of the company’s shares of C$2.89. This has been weighted against the average trading-price of ANS shares over the past 20 trading days.

Unanimous support

This proposed transaction has been unanimously supported by Ainswoth’s board of directors. In addition, the private-equity funds that are managed by Brookfield Asset Management have also entered into the agreement to vote “for” this transaction. They own a 54% stake in Ainsworth.

Louisiana-Pacific Corporation (NYSE:LPX) rose 11.07% in Thursday’s trading. The opening price of the shares was $16.62 which touched an intraday high of $17.47 and closed at $16.95. More than 17.44 million shares were traded in Thursday’s trading while the average volume of shares traded over 30 days was 3.12 million. The company has a market cap of $2.38 billion.

About the company

LPX is a company that manufactures various building products. It operates in four different segments- North America Oriented Strand Board; Engineered Wood Products; Siding and South America. As of 31 December 2012, it owned 21 different modern-located facilities in the U.S and Canada. It has 2 facilities in Chile and 1 facility in Brazil. It also operates 3 facilities via joint-ventures. In these ventures, LPX provides product-distribution for the North American region. Its products are largely used in the construction of new homes, remodeling projects, and repair of structures as well as in manufactured housing.