The Norbord OSB Plant, located on Highway 40 south of Grande Prairie (Photo: Google Maps / Streetview)

By Shaun Penner

Strategic Business Combination

West Fraser Timber buying Norbord in $4 billion stock deal

Nov 19, 2020 | 11:22 AM

TORONTO – West Fraser Timber Co. Ltd. has signed a deal to acquire Norbord Inc. in an all-stock transaction valued at $4 billion.

Under the deal, Norbord shareholders will receive 0.675 of a West Fraser share for each Norbord share they hold.

West Fraser shareholders will own 56 per cent of the combined company, with current Norbord shareholders owning 44 per cent.

West Fraser CEO Raymond Ferris says the purchase of Norbord is a perfect complement to its portfolio.

“Enabling us to deliver a wider range of wood products, and making us a more complete, efficient and valuable partner for our customers,” said Raymond Ferris, President and Chief Executive Officer of West Fraser. “Norbord is the largest global OSB producer with a well-earned reputation for cost and margin performance, and for expanding the use of OSB in new applications and industries.

Meaningful Mementos

Remembering Someone You've Lost at Christmas

Dec 03, 2024

Seasonal Sorrow

How Do You Get Through The Holidays When You're Grieving?

Nov 01, 2024

Upcoming Events at Oliver's

Grief & Loss and Estate Planning Seminars

Oct 02, 2024

The deal requires approval by a two-thirds majority vote by Norbord shareholders and a simple majority vote by holders of West Fraser’s common and class B shares.

Brookfield Asset Management Inc., Norbord’s principal shareholder with a 43 per cent stake, has agreed to support the agreement.

“This transaction recognizes Norbord’s global OSB position and is a very exciting opportunity for our customers, our employees and our shareholders,” said Peter Wijnbergen, President and Chief Executive Officer of Norbord. “Joining West Fraser will allow us to expand our profile with our core new home construction customers, and provides a stronger platform to pursue our industrial OSB products strategy.

“For our team, this will provide expanded opportunities as part of a larger company with common values and a shared priority on safety. Our Board and executive team have great respect for West Fraser, and we look forward to being a part of a much broader business with the West Fraser team.”

West Fraser will continue to be led by Ferris as CEO and Chris Virostek as Chief Financial Officer. Should the deal go through, Wijnbergen will be appointed President, Engineered Wood, responsible for the company’s OSB, plywood, particleboard, MDF and veneer operations. Sean McLaren, currently West Fraser’s Vice-President, U.S. Lumber, would be appointed President, Solid Wood, responsible for all of the company’s lumber operations.

The deal is expected to close in the first quarter of 2021.

Norbord has an OSB plant located along Highway 40 south of Grande Prairie.

West Fraser owns both High Prairie and Manning Wood Products, plus Slave Lake Veneer and Slave Lake Pulp. It also has a mill in Chetwynd, BC.

With files from the Canadian Press)