Norbord and Ainsworth to merge to create global OSB leader
15 December 2014Norbord Inc and Ainsworth Lumber Co Ltd have signed a definitive agreement under which they will merge to create a leading global wood products company focused on OSB across North America, Europe and Asia.
The combination of Norbord and Ainsworth, says a press statement, will create one of the largest and lowest-cost OSB producers globally, with a portfolio of high-quality assets that produce a wide range of products for residential, industrial and specialty applications.
"This transaction unites two complementary businesses behind a common vision of enhanced service to our customers and growth in North America, Europe and Asia," said Peter Wijnbergen, Norbord's president and ceo.
"Norbord and Ainsworth are each low-cost producers in their respective regions, and with our complementary operations and a more diverse range of specialty products, we will be better able to serve our customers across the globe. The growth potential we see in the combined company also offers significant value to our shareholders." Said Jim Lake, Ainsworth's president and ceo: "The combination of the two companies will mean tremendous opportunities for our people and our customers. By joining with Norbord we will be able to leverage its commitment to low-cost operational excellence to expand and improve our existing range of products and enhance our customer relationships.
"For our shareholders, this transaction offers significant potential for continued value creation as investors in a larger and better-capitalized company with ongoing participation in the current US housing recovery."
