NASHVILLE, Tenn.--(BUSINESS WIRE)--Jul. 31, 2017-- Louisiana-Pacific Corporation (LP) (NYSE: LPX) today announced it has entered into an arrangement agreement to acquire Watkins, Minn.-based International Barrier Technology Inc. (Barrier) for $22 million.
The agreement is for 100 percent of the shares of Barrier, a British Columbia company publicly traded on the TSX Venture Exchange, making Barrier a wholly owned subsidiary of LP.
The transaction is subject to the approval of the Barrier shareholders and satisfaction of customary conditions, including court approval.
“We are confident that this acquisition will help accelerate our growth into new markets,” LP CEO Brad Southern said.
Barrier manufactures the fire retardant coating used in LP® FlameBlock® fire rated products.
Southern said the trend for more fire resistance in residential and commercial buildings continues to escalate, driven by changing building codes and their enforcement.
“Over the last seven years we have validated the market acceptance of the FlameBlock brand and demonstrated strong sales growth,” Southern noted. “Flame retardant products are a key development target of our Growth and Innovation plans.”
Barrier CEO Mike Huddy said the success of the FlameBlock brand and LP’s commitment to flame retardant products is one of the reasons why he believes Barrier is a good fit for LP. “We believe our fire resistant technology is in great hands with an innovative company like LP,” he said.
LP will continue to honor Barrier’s existing contracts and service its customers’ needs. Barrier will operate as part of LP’s OSB business.
The acquisition is expected to close by the end of this year.