Louisiana-Pacific and Casella sell joint stake in insulation producer.
Louisiana-Pacific Corp., (LP), a Nashville, Tenn.-based manufacturer of building materials, and Rutland, Vt.-based Casella Waste, which provides recycling and solid waste services primarily in the Northeastern United States, have jointly announced plans to sell their ownership stake in US GreenFiber LLC to the private equity firm Tenex Capital Management for $18 million.
GreenFiber, with seven locations throughout the United States, produces insulation products with a minimum of 85 percent recovered fiber. The company says it is the largest manufacturer of natural fiber insulation, fire and sound products.
LP and Casella each own a 50 percent stake in the US GreenFiber, headquartered in Charlotte, N.C.
John Casella, chairman and CEO of Casella Waste, says, “Through our GreenFiber US joint-venture, we have enjoyed a successful 12-year partnership with Louisiana-Pacific and the GreenFiber management team. Initially, the GreenFiber cellulose insulation manufacturing business provided a natural hedge for recycled paper processed at our MRFs (material recovery facilities). However, this intrinsic benefit dissipated after the sale of our nonintegrated 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," Casella adds. "And, with their recent improved performance we took the opportunity to exit this non-core investment.”
Curt Stevens, LP CEO, says, "Casella has been a great partner through the years of our joint ownership, and we are pleased with the successful sale of GreenFiber to Tenex."
Michael Green, CEO of Tenex Capital Management, says, “In GreenFiber, we have acquired a market leading company in the insulation industry that enjoys a strong reputation for superior quality and a high level of customer service with contractors, builders, retailers and homeowners. We look forward to supporting the company and its management team in executing their growth plan.”