PLANT

Norbord, Ainsworth Lumber plan to combine businesses

Brookfield Asset Management, a majority shareholder in each company, will own 53% of the combined firm.


TORONTO — Two Canadian wood product companies – Norbord Inc. and Ainsworth Lumber Corp. – plan to combine their businesses through a $759-million deal to create one of the world’s largest producers of oriented strand board (OSB).

OSB is a type of wood panel used for building homes and for industrial construction.

Brookfield Asset Management is majority shareholder of each company and will own about 53% of the combined company’s outstanding equity.

The deal will involve Toronto-based Norbord buying Vancouver-based Ainsworth Lumber in exchange for shares currently worth about $759 million.

Brookfield and its affiliates control about 55% of Ainsworth stock and 52% of Norbord shares. It has comitted to vote in favour of the transaction.

© 2014 The Canadian Press

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