Pacific Woodtech buying LP's EWP business
Pacific Woodtech (PWT) has reached a deal to acquire LP Building Solution's Engineered Wood Products (EWP) business for $210 million.
The purchase includes LP’s I-Joist and laminated veneer lumber division. Featured in the acquisition are LP's LVL and I-joist manufacturing facilities in Wilmington, N.C.; Red Bluff, Calif.; and Golden, British Columbia, Canada.
The deal also includes associated timber license assets, and the SolidStart brand. This transaction is expected to occur in the third quarter of 2022.
PWT is based in Burlington, Wash. and produces a variety of building products including both LVL and treated LVL along with i-joists and additional materials.
The acquisition comes as PWT expands its North American engineered wood product offerings
According to Jim Enright, president and CEO of Pacific Woodtech, adding the EWP facilities in Golden, Wilmington, and Red Bluff to the company’s existing EWP business “propels our company to new growth."
“We aim to drive positive change at the cutting edge of engineered wood products, and this acquisition will provide a more streamlined and focused EWP resource for the industry,” Enright said. “We are committed to making this a seamless transition, one that allows for the retention and care of current employees, clients, and suppliers and strengthens our position as a leading force in the EWP market going forward."
LP's financial adviser is UBS Investment Bank. LP's legal advisers are Troutman Pepper and Fasken Martineau DuMoulin LLP.
"We believe that Pacific Woodtech is well-positioned to invest in and grow the SolidStart brand, and its acquisition of LP's EWP business marks another important step in LP's ongoing strategic transformation," said LP Chair and CEO Brad Southern. "We will work with Pacific Woodtech to ensure a smooth transition for our EWP employees, customers, and suppliers.”
Based in Nashville, Tenn., LP reported first quarter 2022 sales increased 31% to $1.337 billion.
LP’s EWP product sales increased more than 32% in the first quarter to $170 million.
In February, LP also sold its 50% share in two joint ventures that produce I-joists. Resolute Forest Products purchased the stake in a $50 million deal.
In 2021, LP also ceased production of Laminated Strand Lumber (LSL) at its Houlton, Maine facility to begin the conversion of that facility to Siding Solutions production.
