Louisiana-Pacific Corporation will buy Vancouver, B.C.-based Ainsworth Lumber Co. in a transaction worth approximately $1.1 billion, the companies announced today.

Ainsworth is a manufacturer and marketer of OSB with a focus on value-added specialty products for markets in North America and Asia. Ainsworth’s four OSB manufacturing facilities, located in Alberta, British Columbia and Ontario, have a combined annual capacity of 2.5 billion square feet with the potential to increase capacity to 3.1 billion square feet through the expansion of the Grande Prairie, Alberta mill.

“This is an excellent transaction that makes LP more valuable for our customers and our shareholders,” said Curt Stevens, LP’s CEO. “Ainsworth has very high quality assets and provides us with an expanded suite of strand-based products and technologies, additional access to key international growth markets, particularly in Asia, and enhanced scale and efficiencies in North America.”

Ainsworth’s CEO Jim Lake said, “For our people, this will bring even greater financial strength to the business and the opportunity to become an important part of a well-resourced, innovative company with an excellent operational track record and an uncompromising commitment to safety.”

On a pro forma basis, the combined company generated approximately $2.5 billion in sales, $300 million in income from continuing operations, and adjusted EBITDA from continuing operations of $575 million for the 12 months ended June 30, 2013.