resources | BCBusiness
Ainsworth manufactures OSB panels
Previously announced $1.1-billion sale to U.S. giant terminated due to antitrust demands
The previously announced sale of Ainsworth Lumber Co. to Louisiana-Pacific Corp. has been called off. The two companies reported that due to demands by antitrust agencies in both countries the acquisition announced in September last year has been terminated.
The companies announced last September that Louisiana-Pacific would pay approximately $1.1 billion in cash and shares for Ainsworth, representing a 30-per-cent premium over Ainsworth’s share price at the time of $2.89.
“Although we are disappointed with this outcome, we look forward to advancing the ongoing growth and success of our business,” said Ainsworth CEO Jim Lake.
Vancouver-based Ainsworth manufactures engineered-wood products, including oriented strand board (OSB) and specialty panels. It has mills in 100 Mile House, Grand Prairie and High Level in Alberta, and Barwick, Ontario. Ainsworth reported net income of $38.8 million on sales of $488 million in 2013.
Ainsworth Lumber was founded by David Ainsworth in 100 Mile House in 1950 and remained in family hands until 2008, when creditors took control of the company. Its majority shareholder today is Brookfield Capital Partners Ltd.