Louisiana-Pacific Corporation and Casella Waste Systems, Inc. Announce the Sale of US GreenFiber, LLC
NASHVILLE, Tenn.
and
RUTLAND, Vt
.,
Dec. 5, 2013
(GLOBE NEWSWIRE) --
Louisiana-Pacific Corporation
("LP") (NYSE:LPX) and
Casella Waste Systems, Inc.
("Casella") (Nasdaq:CWST), today announced that they have sold
their membership interests in
US GreenFiber, LLC
("GreenFiber") to a limited liability company formed by
Tenex Capital Management
("Tenex") for total cash consideration of
$18.0 million
. They expect aggregate net cash proceeds to be approximately
$7.0 million
, after the working capital true-up and the repayment of indebtedness and
other transaction expenses.
"Through our GreenFiber joint-venture,
we have enjoyed a successful 12 year partnership with
Louisiana-Pacific
and the GreenFiber management team," said
John W. Casella
, chairman and chief executive officer of Casella. "Initially, the
GreenFiber cellulose insulation manufacturing business provided a natural
hedge for recycled paper processed at our MRFs, however this intrinsic
benefit dissipated after the sale of our non-integrated MRFs in March
2011."
"Over the last
5 years, the GreenFiber management team did an excellent job navigating
the deep downturn in the housing market," Casella said. "And,
with their recent improved performance we took the opportunity to exit
this non-core investment."
LP CEO
Curt Stevens
said, "Casella has been a great partner through the years of our
joint ownership, and we are pleased with the successful sale of GreenFiber
to
Tenex
."
Michael Green
, CEO of
Tenex Capital Management
, stated, "In GreenFiber, we have acquired a market leading company
in the insulation industry that enjoys a strong reputation for superior
quality and a high level of customer service with contractors, builders,
retailers and homeowners. We look forward to supporting the company
and its management team in executing their growth plan."
LP and Casella were represented by
Greentech Capital Advisors Securities, LLC
in the marketing and sale of GreenFiber.
About LP
Louisiana-Pacific Corporation
is a leading manufacturer of quality engineered wood building materials
including OSB, structural framing products, and exterior siding
for use in residential, industrial and light commercial
construction. From manufacturing facilities in the
U.S., Canada, Chile
and
Brazil
, LP products are sold to builders and homeowners through building
materials distributors and dealers and retail home centers. Founded
in 1973, LP is headquartered in
Nashville, Tennessee
and traded on the
New York Stock Exchange
under LPX. For more information, visit www.lpcorp.com
.
Source: http://ir.casella.com/releasedetail.cfm?ReleaseID=812042
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