June 11, 2012
ARAUCO has signed a purchase agreement for the acquisition of 100% of the shares of Flakeboard Company Limited, a leading panel company in the North American market. The price for the shares to be paid by ARAUCO is US$242.5 million. Flakeboard operates in Canada and the US with seven production facilities, which are strategically located in relation to centers for consumption and supply of raw materials (Oregon, Arkansas, South Carolina, New Brunswick and Ontario).
With the purchase of Flakeboard – to be completed once the conditions precedent in the purchase agreement have been fulfilled and currently expected to occur during the second semester of this year - the annual production of ARAUCO panels in North America is expected to increase to 2.9 million m3 (1,600,000 MSF ¾” basis), as a result of which ARAUCO would become a leading producer of MDF panels and Particleboard in North America.
Matías Domeyko, ARAUCO’s Chief Executive Officer, stated that, “This transaction reflects the significant internationalization process that ARAUCO is undertaking. With this important transaction, ARAUCO confirms its commitment to leadership in the panel business and would become one of the most important actors in this market at the global level”.