LP Sells Portion of I-Joist Venture to Resolute
LP Building Solutions (LP) has announced an agreement to sell its 50% equity interest in two joint ventures that produce I-joists to Resolute Forest Products Inc. for $50 million, subject to customary adjustments.
LP Solid Stat I-Joists.
The joint ventures are 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 have a 50% interest in each entity. Currently, Resolute Forest Products operates the facilities and LP sells the products.
LP will enter into separate agreements with Resolute Forest Products to continue to serve as the exclusive distributor of the engineered wood products manufactured at the two operations.
“I would like to thank Resolute Forest Products for a long and mutually rewarding partnership,” said LP Chair and Chief Executive Officer Brad Southern. “As LP exits the joint venture and transitions to a distribution agreement, I am confident that this next phase of our relationship will generate value for both companies.”
The completion of the sale, subject to regulatory approvals and certain closing conditions, is expected to close in the first half of 2022.