Aggregate net proceeds are expected to be approximately $7 million
Louisiana-Pacific Corporation (LP) and Casella Waste Systems Inc. announced that they have sold their membership interests in US GreenFiber LLC to a limited liability company formed by Tenex Capital Management for total cash consideration of $18 million. They expect aggregate net cash proceeds to be approximately $7 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 CEO 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."
LP and Casella were represented by Greentech Capital Advisors Securities, LLC in the marketing and sale of GreenFiber.