Louisiana-Pacific Corporation is spending $75 million to become the sole owner of a Canadian lumber mill, the Nashville-based manufacturer announced Wednesday.

LP (NYSE: LPX) is expected to complete a deal by the end of the year to purchase Canfor Corporation’s 50 percent stake in the mill.

The firms have signed a letter of intent that sets the purchase price for Canfor’s share, including working capital and with the possibility of additional considerations based on the mill’s earnings.

Louisiana-Pacific currently operate the mill jointly with the former providing operational support, while Canfor provides labor, fiber resource management and administrative services.

LP manufactures engineered wood, siding and other building products. The Peace Valley mill in Fort St. John, British Columbia has an annual production capacity of 820 million square feet of oriented strand board, a product used in construction and furniture manufacturing.

Source:The Tennessean

Posted and edited by Riona, Hanbao News Department

Contact: rionach@cltimber.com