After lumbering around 2017 lows, shares of International Barrier Technology Inc. (TSX-V:IBH)(OTCQB:IBTGF) are trading Tuesday at their highest level since April 2015 on news that the company is being bought collectively by Louisiana-Pacific Corp. (NYSE:LPX) and Louisiana-Pacific Canada.
Louisiana-Pacific has agreed to pay $0.41 U.S. each for all of the issued and outstanding shares of International Barrier for a purchase price of $22.0 million U.S.
From its locations in Vancouver, British Columbia and Watkins, Minnesota, International Barrier develops, manufactures, and markets proprietary fire-resistant building materials branded as LP® FlameBlock® Fire-Rated OSB Sheathing and Blazeguard FR Deck Panel.
The company reported record sales volumes for the fiscal year ended June 30, 2017 of 25.64 million square feet, up 4% from the fiscal year prior. Less royalty income, preliminary fiscal year sales revenue was down to $9.26 million U.S. from $9.53 million U.S. in fiscal 2016.
During the nine months through March 31, 2017 - the most recent period filed with SEDAR - International Barrier posted a net profit of $457,235 U.S. on sales of $7.48 million U.S.
Both boards have approved the deal. Upon completion of the transaction, should shareholders approve and customary regulatory approvals be met, the company will become a wholly-owned subsidiary of the wood building materials stalwart.
The company will cease trading as a public entity, as well.
After closing at 31 Canadian cents on Monday, Toronto-listed shares of IBH have shot ahead 61.3% to C$0.50 on the buyout news. In the States, shares are up 62% to just below the acquisition price at 39.8 U.S. cents.
