LP sells decking business
Louisiana-Pacific (LP) has agreed to sell its composite decking business to Fiber Composites, maker of Fiberon decking and railing systems, for an undisclosed sum. The deal includes a manufacturing and distribution facility in Meridian, Idaho, and all rights to LP’s WeatherBest brand of composite decking and railing. The transaction is expected in close in October 2007.
Headquartered in New London, N.C., Fiber Composites has been looking for capacity and a regional distribution facility in the western United States, said Bill Ross, vp-sales and marketing. “This purchase satisfied both of those requirements immediately,” he explained. In addition to Fiberon, Fiber Composites also manufactures the Veranda decking and railing brand sold at Home Depot.
LP and Fiber Composites are two of the leading suppliers of composite decking in a highly fragmented industry with more than 30 manufacturers. Based in Nashville, Tenn., LP reported a second-quarter net loss of $23 million last week, with sales down 28 percent from the same period last year.