Louisiana-Pacific Corp. (NYSE: LPX) is looking to capitalize on the housing comeback by acquiring Ainsworth Lumber Co. Ltd. (TSX: ANS) in a deal valued at $1.1 billion.

The purchase price includes C$3.76 (U.S. $3.57) per Ainsworth share, plus debt assumption.

Vancouver-based Ainsworth manufactures and sells strand board and other specialty wood products. 

Louisiana-Pacific, headquartered in Nashville, Tenn., manufactures building products.

Housing starts are expected to increase 23 percent from 2012, and for 2014, the consensus projection is approximately 1.2 million starts, says Curt Stevens, Louisiana-Pacific's CEO. Stevens says the deal should provide Ainsworth with greater flexibility and exposure to that recovery. 

Louisiana-Pacific has obtained a commitment for a senior-secured term loan from Goldman Sachs & Co. (NYSE: GS) and BMO Capital Markets to help finance the deal. Jones Day is provided the company’s legal advice, while Stikeman Elliott LLP acted as the Louisiana-Pacific’s Canadian counsel and Orrick Herrigton & Sutcliffe LLP acted as antitrust counsel.

The deal follows several building products acquisitions. In August, funds advised by Ares Management and the Ontario Teachers’ Pension Plan agreed to buy CPG International Inc., a building materials company. Markel Corp. (NYSE: MKL) picked up home builder Eagle Construction of VA LLC in August. 

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