Stella-Jones Completes Acquisition of Thompson Industries
December 07 2011 - 5:14PM
Marketwired
Stella-Jones Inc. (TSX:SJ) today announced that it has completed
the acquisition of Thompson Industries, Inc. ("Thompson"), a
provider of treated wood products to the railroad industry.
Founded in 1981, Thompson produces treated wood products, mainly
railway ties and timbers, at a facility located in Russellville,
Arkansas. Thompson's sales for its fiscal year ended September 30,
2011 were approximately US$49.0 million. The purchase price
totalled approximately US$39.0 million, subject to post closing
adjustments. Stella-Jones financed the acquisition through existing
credit facilities and an unsecured vendor note of US$6.5
million.
"The acquisition of Thompson further enhances Stella-Jones'
status as a leading provider of treated wood products and services
to the North American railroad industry. More importantly, we
expect the transaction to be immediately accretive to earnings and
to yield synergies, as our continental network will benefit from
greater operating efficiencies," said Brian McManus, President and
Chief Executive Officer of Stella-Jones.
ABOUT STELLA-JONES
Stella-Jones Inc. (TSX:SJ) is a leading producer and marketer of
pressure treated wood products. The Company supplies North
America's railroad operators with railway ties, timbers and
recycling services; and the continent's electrical utilities and
telecommunications companies with utility poles. Stella-Jones also
provides industrial products and services for construction and
marine applications, as well as residential lumber to retailers and
wholesalers for outdoor applications. The Company's common shares
are listed on the Toronto Stock Exchange.
Except for historical information provided herein, this press
release may contain information and statements of a forward-looking
nature concerning the future performance of the Company. These
statements are based on suppositions and uncertainties as well as
on management's best possible evaluation of future events. Such
factors may include, without excluding other considerations,
fluctuations in quarterly results, evolution in customer demand for
the Company's products and services, the impact of price pressures
exerted by competitors, the ability of the Company to raise the
capital required for acquisitions, and general market trends or
economic changes. As a result, readers are advised that actual
results may differ from expected results.
Contacts: Source: Stella-Jones Inc. Contacts: George T. Labelle,
C.A. Senior Vice-President and Chief Financial Officer (514)
934-8665 (514) 934-5327 (FAX)glabelle@stella-jones.com Martin
Goulet, CFA MaisonBrison Communications (514)
731-0000martin@maisonbrison.com
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