Pfleiderer to sell UNIBOARD Canada facilities to a subsidiary of Kaycan Ltd

Sep 06, 2012. /Lesprom Network/. Pfleiderer Canada Inc., the parent company of Uniboard Canada Inc., has entered into an agreement to sell its Particleboard, MDF, Thermally Fused Melamine and Laminate Flooring facilities to a subsidiary of Kaycan Ltd. in an all cash deal, as the company said in a press release received by Lesprom Network. The Uniboard facilities sold to Kaycan include three particleboard lines, one MDF line, five thermally fused melamine lines and two laminate flooring lines servicing primarily the Canadian, US Northeast and Mid-West US markets. Kaycan is a private Canadian corporation focused on the North American building industry. Uniboard's President and CEO James Hogg stated, "This agreement marks the dawning of an exciting new era for Uniboard. As a market leader in Quebec, Ontario and the Northeast United States market, this acquisition will allow Uniboard to reinforce our market position and to fully focus our attention on driving the business forward in both our panel and laminate flooring operations". Kaycan's President Lionel Dubrofsky added, "We are fully committed to the growth of Uniboard in its core markets. We bring strong operating experience in the building products environment as well as a very solid financial basis to this deal. Uniboard's senior management will remain intact to manage the business. The direction of Uniboard and existing customer relations will be reinforced". Closing of the transaction is expected in the 3Q 2012 subject to certain terms and conditions. CIBC World Markets Inc. is acting as financial advisor and McCarthy Tétrault LLP and Morrison Cohen LLP are acting as legal advisors to Pfleiderer AG, Uniboard's ultimate parent company in Germany. Davies Ward Phillips & Vineberg LLP is acting as legal advisor to Kaycan. Uniboard® Canada Inc. is a leading North American manufacturer of engineered wood products with 800 employees. Uniboard® has installed capacity of over 640 million square feet of raw particleboard, high-density and medium-density fiberboard, of which over 50% is converted into value-added melamine and laminate flooring products.