Norbord and Ainsworth Lumber have signed an agreement under which they will merge, creating one of the largest oriented strand board (OSB) manufacturers across North America, Europe and Asia.
Under the terms of the agreement, Norbord will acquire all of the outstanding common shares of Ainsworth. Brookfield Asset Management, which control approximately 55% and 52% of the outstanding common shares of Ainsworth and Norbord respectively, will control approximately 53% of the outstanding common shares of the combined company.
The combined company will operate under the Norbord name, and Norbord’s CEO Peter Wijnbergen will lead the business. Ainsworth’s CEO Jim Lake has agreed to stay on with the combined company in an advisory capacity for a period of six months.
“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 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. Ainsworth has excellent mills, a proven track record of innovation in value-added product development, and we look forward to working together.”
Ainsworth’s Jim Lake, added: “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.”
The deal is expected to be completed in the first quarter of next year.