Louisiana-Pacific Corp. Acquires Composite Decking Assets of Hoff Companies Inc.
Marty Fajerman (Product Manager)
Kelly Stoner (Corp. Media Relations)
Bill Hebert (Investor Relations)
FOR IMMEDIATE RELEASE: MAY 18, 2000
LOUISIANA-PACIFIC CORP. ACQUIRES COMPOSITE DECKING ASSETS OF HOFF COMPANIES
PURCHASE ACCELERATES ENTRY INTO MARKET
Portland, Oregon-- Louisiana-Pacific Corporation (NYSE: LPX) announced today that it has finalized the purchase of Hoff Companies Inc.'s composite decking assets, accelerating the company's entry into the market. The terms of the transaction were not disclosed.
"This acquisition is another step in our objective to become a major, national player in the rapidly growing wood composite decking market," said Joe
Kastelic, director of L-P's specialty building products group. "Acquiring Hoff's composite decking assets gives us an established, immediate presence in
West Coast markets."
Hoff's composite decking assets include a 22,000-square-foot manufacturing facility that opened in Meridian, Idaho in late 1998. The acquisition also includes a 70,000-square-foot facility on the same site, allowing for capacity expansion to serve the growing market.
"Hoff's composite decking plant is an excellent fit with L-P's 50,000-square-foot greenfield facility currently under construction in Selma, Alabama. Both facilities will produce L-P's composite decking using Strandex proprietary extrusion technology," said Kastelic. "Decking is the first of several products planned using wood polymer composite technology."
The company expects no significant production delays at its Idaho facility resulting from the acquisition. Start-up at the Alabama plant is scheduled in May 2000.
"With plants in Alabama and Idaho, L-P is very well positioned to serve customers across the United States," said Kastelic. "The excellent work force in the Boise area and access to readily available wood fiber and plastic will help ensure the long-term success of our composite decking business."
Composite decking is made of recycled and/or excess wood products and post-consumer recycled plastic. It is attractive, easy to work with and withstands weather conditions better than traditional wood decking. Additional products for a complete composite decking system, including deck posts, railing and balusters, are expected to be introduced over the next 12 months.
Louisiana-Pacific, now in its 27th year, is a premier supplier of building products, offering a valuable mix of commodity and value-added specialty products to rapidly growing retail, homebuilding and industrial customers. Visit L-P's website at www.LPCorp.com. Strandex is a trademark of Strandex Corporation and is used by permission.