Cellulose Industry Giants Merge

Building products giant Louisiana-Pacific Corporation (L-P) is purchasing GreenStone Industries, Inc., the top producer of cellulose insulation in the country. GreenStone was virtually unknown in the industry until several years ago, when it went public and began purchasing cellulose manufacturers. GreenStone now operates seven manufacturing facilities and made $41 million in sales last year, representing 30% of the U.S. cellulose insulation industry. L-P is also among the top producers, with about $8 million in sales.

Spokespersons at both companies express great optimism about the merger. “We see this as very positive, with benefits for both companies,” says Colleen Cibula, Coordinator of Marketing Services and Investor Relations for GreenStone. While GreenStone has more experience in management and production of cellulose, L-P has the distribution networks, marketing savvy, and financial resources of a $3 billion building products company.

“I think the real key thing is that this is certainly a very strong endorsement of the industry by a major building products company,” says Daniel Lea, Executive Director of the Cellulose Insulation Manufacturers Association, of which both L-P and GreenStone are members. Lea claims that others in the industry are not too concerned about the merger, as most of the market growth L-P is seeking should come at the expense of other insulation products, such as fiberglass.