NASHVILLE, Tenn. and RUTLAND, Vt. (December 5, 2013) – 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 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.
About LP Building Solutions - As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood building products that meet the demands of builders worldwide. Its extensive offerings include innovative and dependable building products and accessories, such as LP® SmartSide® Trim & Siding, LP Structural Solutions portfolio (LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, LP® TechShield® Radiant Barrier, LP® FlameBlock® Fire-Rated Sheathing and more), oriented strand board (OSB), LP® TopNotch® Sub-Flooring, LP® Outdoor Building Solutions®, and LP Elements® Performance Fencing. Además de productos que brindan soluciones, LP ofrece un servicio al cliente y garantías líderes en la industria. Desde su fundación en 1972, LP ha estado construyendo un mundo mejor bajo su lema Building a Better World™ al brindar ayuda a los clientes para construir viviendas hermosas y duraderas. Con sede en Nashville, Tennessee, LP opera 26 plantas en los EE. UU., Canadá, Chile y Brasil. Para obtener más información, visite LPCorp.com.