Ainsworth Lumber Co is expanding its OSB business after striking a US$457.5m deal to purchase Potlach Corporation’s three mills in northern Minnesota.
The combined 1.3 billion ft2 capacity of the mills will push Ainsworth’s OSB output up to 3.3 billion ft2 a year.
The deal comes as OSB is enjoying high prices and demand due to the booming North American housing market and a need for widespread rebuilding in Florida following Hurricane Charley.
Ainsworth said the acquisition would greatly improve its geographic balance, flexibility and product diversity, as well as representing a more cost effective option than building new mills.
The mills, which Potlach is selling to pay off debt, are situated near Ainsworth’s Voyageur mill at Barwick, Ontario.
