LP Building Solutions to Sell Stake in I-Joist Joint Venture to Resolute Forest Products
LP Building Solutions announced a $50 million deal to sell its 50 percent equity stake in two joint ventures that manufacture I-joists to Resolute Forest Products Inc.
Resolute-LP Engineered Wood Larouche Inc. in Larouche, Quebec, and Resolute-LP Engineered Wood St-Prime Limited Partnership in Saint-Prime, Quebec, are the joint ventures.
The long-standing partnership was formed as an equity method investment in which both LP and Resolute Forest Products own 50% of each business.
Resolute Forest Goods currently maintains the facility, while LP sells the products.
LP will enter into separate agreements with Resolute Forest Products to continue to be the exclusive distributor of engineered wood products manufactured at both facilities.
“I would like to thank Resolute Forest Products for a long and mutually rewarding partnership,” stated LP Chair and CEO 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 sale is expected to occur in the first half of 2022, subject to regulatory approvals and certain closing conditions.
