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Nov. 19, 2020, 8:43 a.m. EST

Norbord to be acquired by West Fraser in a stock deal valued at more than $3 billion

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By Tomi Kilgore

West Fraser Timber Co. Ltd. /zigman2/quotes/202351311/delayed CA:WFT +3.05% announced Thursday a agreement to buy Canada-based oriented strand board (OSB) producer Norbord Inc. /zigman2/quotes/209286756/composite OSB +4.56% /zigman2/quotes/209239198/delayed CA:OSB +3.68% in a stock deal valued at C$4 billion ($3.1 billion). Under terms of the deal, Norbord shareholders will receive 0.675 of a West Fraser share for each Norbord share they own. Based on Wednesday's closing prices, that values Norbord shares at C$49.35 ($37.78), a 13.6% premium. Norbord's U.S.-listed stock was up 2.4% in premarket trading, prior to a trading halt for news. The deal is expected to close in the first quarter of 2021. Norbord's stock has rallied 24.2% year to date through Wednesday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.39% has gained 10.4%.

/zigman2/quotes/202351311/delayed
CA : Canada: Toronto
$ 78.83
+2.33 +3.05%
Volume: 901,498
Jan. 20, 2021 5:40p
P/E Ratio
15.56
Dividend Yield
1.01%
Market Cap
$5.25 billion
Rev. per Employee
$594,756
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/zigman2/quotes/209286756/composite
US : U.S.: NYSE
$ 42.22
+1.84 +4.56%
Volume: 162,765
Jan. 20, 2021 4:10p
P/E Ratio
14.93
Dividend Yield
2.08%
Market Cap
$3.26 billion
Rev. per Employee
$721,250
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/zigman2/quotes/209239198/delayed
CA : Canada: Toronto
$ 53.29
+1.89 +3.68%
Volume: 222,525
Jan. 20, 2021 5:40p
P/E Ratio
14.08
Dividend Yield
2.16%
Market Cap
$4.15 billion
Rev. per Employee
$957,025
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/zigman2/quotes/210599714/realtime
US : S&P US
3,851.85
+52.94 +1.39%
Volume: 2.34B
Jan. 20, 2021 4:58p
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