Louisiana-Pacific Corporation and Casella Waste Systems, Inc. Announce the Sale of US GreenFiber, LLC
06 December 2013 - 8:15AM
Louisiana-Pacific Corporation ("LP") (NYSE:LPX) and Casella Waste
Systems, Inc. ("Casella") (Nasdaq:CWST), today announced that they
have sold their membership interests in US GreenFiber, LLC
("GreenFiber") to a limited liability company formed by Tenex
Capital Management ("Tenex") for total cash consideration of $18.0
million. They expect aggregate net cash proceeds to be
approximately $7.0 million, after the working capital true-up and
the repayment of indebtedness and other transaction expenses.
"Through our GreenFiber joint-venture, we have enjoyed a
successful 12 year partnership with Louisiana-Pacific and the
GreenFiber management team," said John W. Casella, chairman and
chief executive officer of Casella. "Initially, the GreenFiber
cellulose insulation manufacturing business provided a natural
hedge for recycled paper processed at our MRFs, however this
intrinsic benefit dissipated after the sale of our non-integrated
MRFs in March 2011."
"Over the last 5 years, the GreenFiber management team did an
excellent job navigating the deep downturn in the housing market,"
Casella said. "And, with their recent improved performance we
took the opportunity to exit this non-core investment."
LP CEO Curt Stevens said, "Casella has been a great partner
through the years of our joint ownership, and we are pleased with
the successful sale of GreenFiber to Tenex."
Michael Green, CEO of Tenex Capital Management, stated, "In
GreenFiber, we have acquired a market leading company in the
insulation industry that enjoys a strong reputation for superior
quality and a high level of customer service with contractors,
builders, retailers and homeowners. We look forward to
supporting the company and its management team in executing their
growth plan."
LP and Casella were represented by Greentech Capital Advisors
Securities, LLC in the marketing and sale of GreenFiber.
About LP
Louisiana-Pacific Corporation is a leading manufacturer of
quality engineered wood building materials including
OSB, structural framing products, and exterior siding for
use in residential, industrial and light commercial
construction. From manufacturing facilities in the U.S.,
Canada, Chile and Brazil, LP products are sold to builders and
homeowners through building materials distributors and dealers and
retail home centers. Founded in 1973, LP is headquartered in
Nashville, Tennessee and traded on the New York Stock Exchange
under LPX. For more information, visit www.lpcorp.com .
About Casella Waste Systems, Inc.
Casella Waste Systems, Inc., headquartered in Rutland, Vermont,
provides solid waste management services consisting of collection,
transfer, disposal, and recycling services in the northeastern
United States. For further information, visit the company's
website at http://www.casella.com.
About Tenex Capital Management, LLC
Tenex Capital Management, LLC is a private equity firm with
$452M of committed capital that makes control investments in middle
market companies. Tenex utilizes an in-house team of hybrid
professionals skilled in operational leadership, investing and
capital markets structuring to maximize long-term value creation
within our portfolio companies. Tenex is based in New York City.
For additional information, please visit www.tenexcm.com.
CONTACT: Louisiana-Pacific Corporation
Media:
Mary Cohn, 615-986-5886
Investors:
Becky Barckley, 615-986-5600
Mike Kinney, 615-986-5600
Casella Waste Systems, Inc.
Media:
Joseph Fusco, 802-772-2247
Investors:
Ned Coletta, 802-772-2239
Tenex Capital Management, LLC
Media and Investors:
Mary Cook, 212-457-6258, mcook@tenexcm.com
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