LP Purchases Final Ownership Interest in Brazil Oriented Strand Board Plant from Masisa for $24M

Louisiana-Pacific Corporation LPX announced today its subsidiary, LP South America, acquired the remaining 25 percent equity interest in LP-Brasil OSB Industria e Comercio S.A. from Masisa do Brasil LTDA, a subsidiary of Masisa S.A. in Chile. LP Brasil operates the oriented strand board plant located in Ponta Grossa, Parana, Brazil. In 2008, LPSA entered into a joint venture agreement with Masisa-Brasil in which LPSA bought 75 percent of the plant and related assets. The purchase agreement included a put/call option for the remaining Masisa ownership. On May 12, 2011, Masisa exercised its option to sell its ownership. LPSA's acquisition of the remaining 25 percent interest was completed for a purchase price of $24 million, including working capital. The acquisition was funded with $19.5 million of cash on hand and $4.5 million of borrowings under a short-term credit facility with a Chilean bank. LP-Brasil expects to borrow approximately $10 million under a term loan from a Brazilian bank in the near future to replenish its South American cash balance.