West Fraser, Norbord Inc. Announced Strategic Business Combination

SEATTLE (Scrap Monster): Leading B.C. lumber producer West Fraser Timber Co. Ltd. and Norbord Inc. announced that the two companies have entered into a strategic business combination. Under this agreement, West Fraser will acquire all of the outstanding common shares of Norbord in a deal worth $3.1 billion. Following the closing of the transaction, the combined entity will operate as West Fraser.

With the acquisition of the world’s largest OSB producer, West Fraser will emerge as the top global producer of both lumber and OSB. In addition, the Norbord business is expected to bring additional geographic diversity from its well-established facilities in the UK and Western European region. Furthermore, the transaction will provide West Fraser with additional financial flexibility to pursue strategic growth opportunities.

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Commenting on the deal, Raymond Ferris, President and Chief Executive Officer of West Fraser noted that Norbord’s OSB production is a perfect complement to the company’s portfolio. It will enable the company to offer a wide range of products to its customers.

Meantime, Peter Wijnbergen, President and Chief Executive Officer of Norbord said that the transaction recognizes Norbord’s leading global OSB position and that it is a very exciting opportunity for its customers, employees and shareholders.