VANCOUVER _ U.S. forestry giant Louisiana-Pacific Corp. (
NYSE: LPX,
Stock Forum) said it plans to buy Vancouver-based
Ainsworth Lumber Co. Ltd. (
TSX: T.ANS,
Stock Forum) for US$1.1 billion, according to a joint statement by the two companies late Wednesday.
Louisiana-Pacific said it will pay C$3.76 per share for all of the remaining common shares in the Canadian lumber company, resulting in an approximate 30 per cent premium over the company's closing price of C$2.89 on Sept. 3.
Shares in
Ainsworth jumped 33.7% Thursday to $3.93, leaving the company with a market cap of $946.7 million, based on 240.8 million shares outstanding. The 52-week range is $4.31 and $1.93.
Louisiana-Pacific said the deal also means it will assume all of
Ainsworth's debt.
``This is an excellent transaction that makes LP more valuable for our customers and our shareholders,'' said Louisiana-Pacific chief executive Curt Stevens in a statement.
``
Ainsworth has very high quality assets and provides us with an expanded suite of strand-based products and technologies, additional access to key international growth markets, particularly in Asia, and enhanced scale and efficiencies in North America.''
The companies said the deal has ``unanimous support'' from
Ainsworth's board of directions, and from its largest shareholder _ Brookfield Asset Management _ which owns 54 per cent of
Ainsworth's stocks.
The deal, which requires the approval of shareholders, will be voted on in a special meeting next month. It is also subject to regulatory approvals.
According to the statement, the combined companies generated approximately US$2.5 billion in sales in the last 12 months ended June 30, on a pro forma basis.
Ainsworth is a leading Canadian manufacturer and marketer of oriented strand board, which is used in residential home construction. It has four manufacturing facilities located in Alberta, B.C. and Ontario.