LP-Ainsworth deal blocked over antitrust concerns
After months of regulatory delays, Ainsworth has announced that the planned acquisition of the company by Louisiana-Pacific (LP) has been blocked over antitrust concerns by U.S. and Canadian regulators, pending the sale of additional assets.
In order for the transaction to forward, the companies may need to divest one or more of their existing operations.
"Although LP and Ainsworth continue to explore possible solutions and alternatives, Ainsworth is currently unable to determine whether, when or the terms upon which a transaction may be completed," said the company in a statement.
HCN reported in April that the deadline for the acquisition completion was pushed back a third time to June 2, 2014.
The $1.1 billion deal, which is aimed at strenghening LP’s market position by leveraging Ainsworth’s access to international growth markets at a critical period in the housing recovery, had been originally announced in September 2013.
Boise Cascade names Tom Corrick EVP Wood Products
Boise Cascade Company has put Tom Corrick in charge of its Wood Products segment.
Officially taking the title of EVP, Corrick will assume leadership immediately, replacing Tom Lovlien, who is retiring on June 30.
"Tom has done an outstanding job growing our engineered wood products business and introducing our Boise Improvement Cycle for process improvement throughout Wood Products," said CEO Tom Carlile. "He also played a key role in our recent successful IPO process."
Corrick has been with the company since 1980 and has held various financial, planning, and operating positions since. He was tapped as EWP general manager in 1999, VP in 2004, and SVP in 2011, and is credited with playing a major role in the expansion of the segment over the last 15 years.
Loss widens at Beacon Roofing Supply
Herndon, Virginia-based Beacon Roofing Supply joined the long list of LBM-related companies to report a negative impact from severe winter weather.
Sales decreased 7.5% to $384.9 million during the company’s second quarter ended March 31.
On an overall consolidated basis, residential roofing product sales decreased 12.1%, non-residential roofing product sales decreased 2.3%, and complementary product sales decreased 4.1%.
The company posted a net loss of $12.1 million in the quarter, compared with a net loss of $0.2 million in 2013.
“Severe winter weather that ranked among the 10 coldest on record in many states across the upper Midwest to the Southeast had a significant impact on our results this quarter,” said Paul Isabella, the company’s president and CEO. “Multiple winter storms that brought record snowfall and freezing rain delayed both residential and commercial roofing projects across our core markets.”
Isabella also pointed to strategic investments in equipment and inventory during the soft period.
The company opened its eighth new branch of the year, and is planning on adding up to 25 new branches for the full year. It currently operates 249 branches.
“We believe the second half of the year volume will be strong for both our residential and commercial markets,” Isabella added.