Stock:
Symbol Lookup
Register | Login
...
History
...
...

Pre Market | Dow Jones | Gold | Newsletters | Learn


Louisiana-Pacific Corp to Buy Ainsworth Lumber Co. (LPX)

Thursday, September 5, 2013 7:09 AM
Construction material supplier, Louisiana-Pacific Corporation (NYSE: LPX) announced on Wednesday that it has agreed to acquire Ainsworth Lumber Co. in deal valued at about $1.1 billion. The deal will allow LPX to gain foothold in Asia and reap benefits from significantly improving U.S. housing market. The proposed acquisition agreement values Ainsworth at $3.76 C$ a share (US$ 3.59), representing a premium of 30% over closing stock price on Tuesday. The deal also includes assumption of Ainsworth’s debt. Meanwhile, Brookfield Asset Management Inc; which owns 54% stake in Ainsworth, also voted in favor of the deal. LPX expects the acquisition to boost its cash flow and earnings from the first year itself. However, the transaction requires approval of at least two-thirds of Ainsworth shareholders. The Company will hold a special meeting for voting over this issue in October. The deal does not require an approval from LPX shareholders; however, regulatory approval is needed. The deal is expected to close by the end of the year. The Company intends to finance the cash transaction through a combination of existing cash balances in both the balance sheets and remaining by new credit sources. Commenting over the deal, LPX’s CEO, Curt Stevens said, “Ainsworth has very high quality assets and provides us with an expanded suite of strand-based products and technologies, additional access to key international growth markets, particularly in Asia, and enhanced scale and efficiencies in North America.”  
PRINT

FREE Options Trading Lessons
I'll show you how to unlock HUGE Gains with Options Trading
Let's make 2014 the year you get RICH!

Latest Headlines

Japan business lobby plans corporate governance rules: sourceJapan business lobby plans corporate governance rules: source
TOKYO (Reuters) - Japan`s most powerful business lobby, Keidanren, plans to introduce corporate governance rules that will require better disclosure, a person familiar with the matter said, but they...
Canon nudges up profit forecast on higher office equipment salesCanon nudges up profit forecast on higher office equipment sales
TOKYO (Reuters) - Canon Inc <7751.T> raised its full-year operating profit target by a slight 1.4 percent after strong sales of office copiers and printers in the first quarter. Canon, the wor...
IMF says sub-Saharan Africa faces heightened risk of capital outflowsIMF says sub-Saharan Africa faces heightened risk of capital outflows
NAIROBI (Reuters) - Investment in infrastructure and natural resources will continue to underpin economic activity in sub-Saharan Africa, although capital outflows sparked by tighter global financial ...
Exclusive: Marubeni says Chinese authorities detain three staff at grain unitExclusive: Marubeni says Chinese authorities detain three staff at grain unit
TOKYO/BEIJING (Reuters) - Three employees at one of Marubeni Corp`s <8002.T> grain trading units in China have been detained by authorities, the Japanese trading house said on Thursday, a move...
Hyundai Motor first-quarter profit misses estimates, hurt by slow U.S. salesHyundai Motor first-quarter profit misses estimates, hurt by slow U.S. sales
SEOUL (Reuters) - South Korea`s Hyundai Motor <005380.KS> missed analyst estimates by posting first-quarter net profit that was almost identical to a year earlier, as lackluster U.S. performan...

Loading Headlines...
 

Stock Market

Track the stock market today with the latest news and information on all things investing! Watch your stocks perform throughout the day and watch the breaking stock market news.

Feedback | disclaimer | privacy policy

Stock Market News

The Stock Market is ever changing. Keep up on your stock market news.

Stock Market Newsletters

Read up on your favorite stock market newsletters.


Learn the Stock Market

Sharper your stock trading skills with our stock market education section.