LP Building Solutions to Sell its Equity Interest in I-Joist Joint Venture to Resolute Forest Products
LP Building Solutions announced today (2-14-22) that it has entered into an agreement with Resolute Forest Products Inc. to sell its 50% equity interest in two joint ventures that produce I-joists. The sale, which is subject to customary adjustments, is valued at $50 million.
The joint ventures are comprised of Resolute-LP Engineered Wood Larouche Inc. in Larouche, Quebec and Resolute-LP Engineered Wood St-Prime Limited Partnership in Saint-Prime, Quebec. The long-time partnership was established as an equity method investment in which both LP and Resolute Forest Products have a 50% interest in each entity. Currently, Resolute Forest Products operates the facilities and LP sells the products.
LP will enter into separate agreements with Resolute Forest Products to continue to serve as the exclusive distributor of the engineered wood products manufactured at the two operations.
The completion of the sale, subject to regulatory approvals and certain closing conditions, is expected to close in the first half of 2022.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.