NASHVILLE, TN - Louisiana-Pacific (NYSE:LPX) and Casella Waste Systems, Inc. sold their interests in US GreenFiber, a cellulose insultation manufacturer, to a limited liability company formed by Tenex Capital Management for $18 million inl cash. Net proceeds will be $7 after the working capital true-up and the repayment of indebtedness.
"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," John W. Casella, chairman and chief executive officer of Casella. "With their recent improved performance we took the opportunity to exit this non-core investment."
Michael Green, CEO of Tenex Capital Management, adds the acquisition to other recent investments, including Jet Powermatic and NAP Gladu.
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