LP Building Solutions is selling its 50% share in two joint ventures that produce I-joists. Resolute Forest Products is purchasing the stake in a $50 million deal.
The joint ventures are composed of Resolute-LP Engineered Wood Larouche in Larouche, Quebec, and Resolute-LP Engineered Wood St-Prime Limited Partnership in Saint-Prime, Quebec.
The partnership was established as an equity method investment and LP and Resolute Forest PRoducts have a 50% interest in each equity. Currently, Resolute Forest Products operates the Canadian facilities and LP sells the products, which includes LP’s line of SolidStart I-Joist products.
According to a news release, LP will enter into separate agreements with Resolute Forest Products to continue to serve as the exclusive distributor of the engineered wood products manufactured at the two operations.
“I would like to thank Resolute Forest Products for a long and mutually rewarding partnership,” LP chairman and CEO Brad Southern said in a press release. “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 completion of the sale is expected to close in the first half of 2022.
