Resolute Strengthens Wood Products Business Via I-Joist Partnership Buyout, Cogeneration Facility Acquisition

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Resolute Forest Products Inc RFP has agreed to acquire Louisiana-Pacific Corp's LPX 50% equity interest in two joint ventures that produce I-joists in the Lac-Saint-Jean region of Quebec for $50 million.

  • Resolute-LP Engineered Wood Larouche Inc. and Resolute-LP Engineered Wood St-Prime Limited Partnership are located in Larouche and Saint-Prime, respectively.
  • "By acquiring the other 50% of the I-joist partnership, we solidify our presence in the growing and attractive engineered wood products segment with assets we know well, staffed with a talented and dedicated workforce of more than 175 people," commented CEO Remi G. Lalonde.
  • Resolute plans to enter agreements with Louisiana-Pacific continue to serve as the exclusive distributor of the engineered wood products manufactured at the two operations.
  • Resolute also agreed with Boralex to purchase a 34.5-megawatt cogeneration facility in Senneterre, Quebec, adjacent to its Senneterre sawmill.
  • "With this cogen, we will maximize the use of biomass from our regional operations, generating green power and providing a platform for future growth and enhanced competitiveness in the Abitibi-Témiscamingue region. We are pleased to welcome the 30-plus employees of the cogeneration facility to Resolute," commented Mr. Lalonde.
  • The acquisitions are expected to close in the first half of 2022.
  • Resolute intends to pay for the purchases with cash on hand. It held cash and equivalents of $152 million as of December 31, 2021.
  • Price Action: RFP shares are trading lower by 0.91% at $11.96 and LPX higher by 1.97% at $69.38 on the last check Monday.
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