SJ Stella Jones Inc

NOT FOR DISTRIBUTION TO U.S. WIRE SERVICES OR FOR DISTRIBUTION INTO THE UNITED
STATES.


Stella-Jones Inc. (TSX:SJ) ("Stella-Jones" or the "Company") announced today
that it has completed the acquisition of McFarland Cascade Holdings, Inc.
("McFarland"), a provider of treated wood products based in the state of
Washington.


The purchase price amounted to approximately US$250.0 million, subject to post
closing adjustments, including approximately US$125.0 million of net working
capital and the assumption of certain liabilities. Financing for the transaction
has been secured through an $80.0 million private placement of subscription
receipts, which successfully closed earlier today, as well as through term
financing resulting from an increase in the Company's committed revolving credit
facility to $350.0 million. The subscription receipts will be exchanged as at
the close of business today for common shares in the share capital of the
Company on the basis of one common share per subscription receipt. Holders of
subscription receipts do not need to take any action in order to receive the
common shares to which they are entitled. As the subscription receipts were sold
on a private placement basis, these common shares will be subject to regulatory
restrictions on resale until March 31, 2013.


Founded in 1916, McFarland is one of North America's long-standing suppliers of
utility poles, as well as crossarms, piling and crane mats. It is also a
provider of treated lumber for outdoor home projects, including composite
decking, railings and related accessories. It serves its customer base through
four wood treating facilities located in Tacoma, Washington; Eugene, Oregon;
Electric Mills, Mississippi; and Galloway, British Columbia; as well as through
an extensive distribution network. McFarland's sales for its fiscal year ended
December 31, 2012 are expected to reach approximately US$280.0 million and
earnings before interest, taxes, depreciation and amortization ("EBITDA") for
2012 are expected to be approximately US$29.0 million. 


"The acquisition of McFarland further enhances the range of Stella-Jones'
offerings in the North American wood treating industry. We expect the
transaction to be accretive to earnings and to yield synergies, as we remain
focused on optimizing operating efficiency across our continental network," said
Brian McManus, President and Chief Executive Officer of Stella-Jones. 


This press release is not an offer to sell, or a solicitation of an offer to
buy, any securities. The securities referred to in this press release have not
been and will not be registered under the U.S. Securities Act of 1933, as
amended and may not be offered or sold in the United States except pursuant to
an exemption from, or in a transaction not subject to, the registration
requirements of the U.S. Securities Act of 1933.


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 contains
information and statements of a forward-looking nature, including information
relating to McFarland's sales and EBITDA for its fiscal year ended December 31,
2012, to the Company's future earnings and to potential synergies resulting from
the acquisition of McFarland. These statements are based on suppositions,
uncertainties and other factors 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,
the impact of price pressures exerted by competitors, and general market trends
or economic changes. As a result, readers are advised that actual results may
differ from expected results and should not place undue reliance on
forward-looking information.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Source:
Stella-Jones Inc.


Eric Vachon, CPA, CA
Senior Vice-President and Chief Financial Officer
(514) 940-3903
evachon@stella-jones.com


Martin Goulet, CFA
MaisonBrison Communications
(514) 731-0000
martin@maisonbrison.com

Stella Jones (TSX:SJ)
Historical Stock Chart
From Jun 2024 to Jul 2024

Stella Jones (TSX:SJ)
Historical Stock Chart
From Jul 2023 to Jul 2024