North American Homebuilding Binge Fuels $3.1 Billion Takeover
- West Fraser Timber agrees to buy Norbord as wood demand surges
- CEO sees good fit with Norbord amid focus on housing industry
Trees stacked at a West Fraser sawmill.
Photographer: Ben NelmsThis article is for subscribers only.
A Canadian lumber giant agreed to spend about C$4 billion ($3.1 billion) to buy the world’s biggest maker of a plywood substitute, tapping into the high demand for wood products during a pandemic-fueled surge in homebuilding.
West Fraser Timber Co. Ltd. has long sought to expand into oriented strand board, an inexpensive plywood substitute that’s mostly used in residential construction. The Vancouver-based company’s focus on the housing industry -- which drives wood consumption -- made its Thursday offer to buy Norbord Inc., the world’s largest maker of the engineered-wood product, a good fit.