LP Building Solutions Completes Sale of Stake in I-Joist Joint Venture to Resolute Forest Products

Rhea-AI Summary

On March 4, 2022, LP Building Solutions (LP) announced the completion of the sale of its 50% equity interest in two joint ventures producing I-joists to Resolute Forest Products Inc. (RFP). These joint ventures include Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership, both located in Quebec. Following the sale, LP will maintain its role as the exclusive distributor for products manufactured at these facilities, ensuring continued operational collaboration.

Positive

• LP retains exclusive distribution rights for engineered wood products at the joint ventures.
• The sale could provide LP with capital to invest further in its core business.

Negative

• LP has divested a portion of its equity interest, potentially impacting its revenue stream from these joint ventures.

NASHVILLE, Tenn., March 4, 2022 /PRNewswire/ -- LP Building Solutions (LP) (NYSE: LPX) today announced that it closed on the previously announced sale of its 50% equity interest in two joint ventures that produce I-joists to Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP).

The joint ventures were comprised of Resolute-LP Engineered Wood Larouche Inc. in Larouche, Quebec and Resolute-LP Engineered Wood St-Prime Limited Partnership in Saint-Prime, Quebec. The long-time partnership was established as an equity method investment in which both LP and Resolute Forest Products had a 50% interest in each entity.

In connection with the closing, LP entered into separate agreements with Resolute Forest Products to continue serving as the exclusive distributor of the engineered wood products manufactured at the two operations.

About LP Building Solutions
As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood building products that meet the demands of builders, remodelers, and homeowners worldwide. LP's extensive offerings include innovative and dependable building products and accessories, such as Siding Solutions (LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP Outdoor Building Solutions®), LP Structural Solutions (LP® TechShield® Radiant Barrier, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, and LP® FlameBlock® Fire-Rated Sheathing and more), LP® TopNotch® Sub-Flooring, and oriented strand board (OSB). In addition to product solutions, LP provides industry-leading customer service and warranties. Since its founding in 1972, LP has been Building a Better World™ by helping customers construct beautiful, durable homes while our shareholders build lasting value. Headquartered in Nashville, Tennessee, LP operates 25 plants across the U.S., Canada, Chile, and Brazil. For more information, visit LPCorp.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/lp-building-solutions-completes-sale-of-stake-in-i-joist-joint-venture-to-resolute-forest-products-301496091.html

SOURCE LP Building Solutions

FAQ

What was the date of LP Building Solutions' sale of its stake in the joint venture?

LP Building Solutions completed the sale on March 4, 2022.

What joint ventures did LP Building Solutions sell its interest in?

LP sold its 50% interest in Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership.

How will LP Building Solutions continue its relationship with Resolute Forest Products?

LP will serve as the exclusive distributor for engineered wood products manufactured at the joint ventures.

What does the sale mean for LP Building Solutions shareholders?

While LP retains distribution rights, divestiture may affect future revenue from the joint ventures.