LP To Sell Stake In I-Joist JV To Resolute Forest For $50 Mln

(RTTNews) - Building materials maker, LP Building Solutions (LPX) or LP, on Monday announced a deal to sell its 50 percent equity interest in two joint ventures or JVs that produce I-joists to Resolute Forest Products Inc., for $50 million. The transaction is expected to close in the first half of 2022.

The joint ventures are comprised of Resolute-LP Engineered Wood Larouche Inc in Larouche, and Resolute-LP Engineered Wood St-Prime Limited Partnership in Saint-Prime.

The long-term partnership was formed as an equity method investment in which both LP and Resolute Forest Products have a 50 percent interest in each entity. Currently, Resolute Forest Products operates the facilities and LP sells the products.

LP said it will enter into separate agreements with Resolute Forest Products to continue to serve as the exclusive distributor of the engineered wood products manufactured at the two operations.