West Fraser Timber, Vancouver, B.C., is acquiring Norbord, Toronto, Ontario, in a $3.1-billion, all-stock transaction.
When the deal closes, expected in the first quarter of 2021, the combined company will operate as West Fraser and become the top global producer of both lumber and OSB.
The companies have entered into a definitive agreement pursuant to which West Fraser will acquire all of the shares of Norbord. Upon closing, current West Fraser shareholders will own approximately 56% of the company, with current Norbord shareholders owning 44%.
West Fraser intends to retain all Norbord mills in North America and Europe, as well as current Norbord management and employees to continue to grow the engineered wood business. West Fraser will continue to maintain a significant office presence in Vancouver, Toronto, Quesnel and Memphis, as well as in Norbord’s existing European locations.
West Fraser will continue to be led by Raymond Ferris as CEO and Chris Virostek as CFO. Norbord president/CEO Peter Wijnbergen will become president, engineered wood, responsible for the company’s OSB, plywood, particleboard, MDF and veneer operations.
Sean McLaren, currently West Fraser’s VP, U.S. lumber, will be appointed president, solid wood, responsible for all of the company’s lumber operations.
West Fraser’s board of directors will continue to be chaired by Hank Ketcham. Two of Norbord’s current independent directors will join the West Fraser board.