LP to sell interest in I-joist projects to Resolute Forest Products
NASHVILLE, Tenn. — LP Building Solutions (LP) announced an agreement to sell its 50% interest in two joint ventures that produce I-joists to Resolute Forest Products Inc. for $50 million, subject to customary adjustments.
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-standing partnership was established as an equity method investment in which LP and Resolute Forest Products own 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 engineered wood products manufactured at both operations.
“I would like to thank Resolute Forest Products for a long and mutually rewarding partnership,” said LP President and CEO Brad Southern. “As LP exits the joint venture and moves into a distribution agreement, I am confident that this next phase of our relationship will drive value for both companies.”
Completion of the sale, subject to regulatory approvals and certain closing conditions, is expected to be completed in the first half of 2022.