Ainsworth Lumber Co Ltd has entered into an agreement with Grant Forest Products Inc to indirectly acquire the remaining 50% interest in Footner Forest Products Inc and its oriented strand board facility in High Level, Alberta for C$20m.

If the transaction goes ahead, it is expected to close in the first quarter of 2011 and Ainsworth will own 100% of Footner.

The deal needs approval by the court in respect of Grant Forest Products’ proceedings under the Companies’ Creditors Arrangement Act (CCAA).