Norbord to buy Ainsworth Lumber
Citing minimal overlap and high growth potential, Toronto-based Norbord is acquiring Vancouver-based Ainsworth Lumber to create what both companies are calling “a leading global wood products company focused on oriented strand board across North America, Europe and Asia.”
Under the terms of the deal, Norbord has agreed to acquire all of the outstanding common shares of Ainsworth in an all-share transaction in which Ainsworth shareholders will receive 0.1321 of a Norbord share for each Ainsworth share. The deal is valued at about $667 million.
“This transaction unites two complementary businesses behind a common vision of enhanced service to our customers and growth in North America, Europe and Asia,” said Peter Wijnbergen, Norbord’s president and CEO. “Norbord and Ainsworth are each low-cost producers in their respective regions, and with our complementary operations and a more diverse range of specialty products, we will be better able to serve our customers across the globe.”
He added that Ainsworth has excellent mills, a proven track record of innovation in value-added product development.
“The growth potential we see in the combined company also offers significant value to our shareholders,” Wijnbergen said.
The combined company generated$1.63 billion in sales and $143 million in adjusted EBITDA for the 12 months ended Sept. 27.
Said Jim Lake, Ainsworth’s President and Chief Executive Officer: “The combination of the two companies will mean tremendous opportunities for our people and our customers. By joining with Norbord we will be able to leverage its commitment to low-cost operational excellence to expand and improve our existing range of products and enhance our customer relationships.
MiTek rolls out builder products unit
There’s a new building products brand in town, and it has a familiar building industry name.
MiTek Industries, a developer of software tools for structural design product specification and manufacturing, announced the formation of its MiTek Builder Products division.
“We will continue to focus on our component manufacturing and building supply customers to equip them with the tools that consistently make them the suppliers of choice among builders,” said Tom Manenti, chairman and CEO of MiTek. ”To that end, the new MiTek Builder Products division is a natural fit. It allows us to further our customers’ desire to build safe, optimized, code-compliant wood structures at the lowest possible cost.”
The company, which also manufactures or distributes structural connectors, acquisitions in the builder products space, has amassed a number of building product brands, and intends to better promote in their own division. The product brands include USP Structural Connectors, the Z4 Tie-Down System, and the Hardy Frame Shear Wall System, as well as design software solutions for decks and structural connectors for its USP Structural Connectors brand.
MiTek is a Berkshire Hathaway company.
Also offered through the MiTek Builder Products division is SAPPHIRE Supply, an estimating and design module within the MiTek SAPPHIRE software suite, designed for lumber and building material suppliers. This module is also compatible with SAPPHIRE Viewer for collaboration with builders and others in the design and optimization of the wood structural frame.
Venezio receives lumber honors
Jim Venezio of Park Building Supplies was recognized as Lumber Person of the Year by the Eastern New York Lumber Dealers Association.
Park Building Supply of Schenectady, New York, was founded in 1947 by William and Mary Venezio. Today it is run by their sons Jim and Bob Venezio.
One of the missions of the ENYLDA is to represent, unite, train, and lead independent lumber and building material dealers in the Eastern New York geographic region, according to the association’s web site.