Maibec to acquire LP’s Nova Scotia siding facility, CanExcel brand
February 28, 2020 By LP Building Solutions, Maibec
Tennessee-based LP Building Solutions and Quebec’s Maibec have announced a joint agreement for Maibec’s acquisition of LP’s East River facility located in Nova Scotia, as well as the assets and brand rights for CanExel, the fibre-based siding product manufactured there.
The closing of this transaction is subject to customary closing conditions and is expected to occur in the second quarter of 2020.
The CanExel brand is well positioned in Maibec’s current market and aligns well with its reputation as a siding system specialist.
“We are very excited about the proposed transaction,” said Maibec chief executive officer Patrick Labonté. “CanExel is a leading brand in its market, just as Maibec is one of the most recognized brands of genuine wood siding and eastern white cedar shingles. Adding CanExel to Maibec’s portfolio provides a broader product offering to our growing markets. CanExel will be instrumental to our expansion throughout North America.”
With this move and the recently announced conversion of LP Roaring River to a strand prefinishing facility, LP’s siding business will focus exclusively on supporting the high customer demand for its strand-based siding products.
“LP’s SmartSide strand siding business is one of the fastest-growing siding brands in the U.S.,” said executive vice-president and general manager of siding, Neil Sherman. “This strategic decision to remove fibre products from our portfolio allows us to mobilize additional resources, increase focus and commitment for our LP SmartSide strand siding technology, and accelerate growth of LP SmartSide ExpertFinish, our new line of prefinished strand-based siding. The future for SmartSide strand is bright, and we expect great things to come.”
A key strategy in LP’s siding growth agenda is to expand its strand-based siding solutions, which deliver the beauty and advanced durability customers desire. In January, the company marked a significant milestone towards that goal by launching ExpertFinish, which comes in 16 versatile, prefinished colours and a variety of SKUs and finishes to complement a multitude of exterior style and design needs. With LP Roaring River’s conversion to a strand prefinishing facility and its recent acquisitions of prefinishing facilities in St. Louis and Green Bay, LP is able to provide the facilities, capabilities and expertise needed to support ExpertFinish and grow the prefinishing market.
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