Louisiana-Pacific Sells Redwood Operations

To Simpson, Long-Term Investment Group

Louisiana-Pacific Corp. has agreed to sell its redwood timberlands and associated milling and distribution operations in Northern California to a consortium consisting of Simpson Investment Co. and Sansome Partners, L.P. for approximately $615 million.

Simpson will buy approximately 74,000 acres of Humboldt County forestland, a sawmill and dry kiln in Samoa, mill at Big Lagoon (Trinidad), the Crannell Nursery and 300 acres of timberland in Trinity Counry.

"Louisiana-Pacific's highly productive redwood forestlands, which are adjacent to our current holdings in the county, represent a logical fit with Simpson's long-term strategy on California's North Coast," said Simpson Investment president Ray Tennison.

Although Simpson had no interest in the other properties, L-P wanted to sell its entire redwood business in a package. So, Simpson selected as a bidding partner Sansome Partners, L.P., a private San Francisco, Ca.based investment firm specializing in long-term investments. "We were impressed with Sansome's commitment