Stella-Jones signs agreement to purchase Cahaba Pressure Treated Forest Products
November 03 2021 - 5:40PM
Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) today
announced that it has entered into an agreement to purchase the
shares of Cahaba Pressure Treated Forest Products, Inc. (“Cahaba
Pressure”) through its U.S. subsidiary for US$66 million, including
working capital, which is currently estimated at US$8 million.
Cahaba Pressure manufactures, distributes and
sells treated and untreated wood poles, crossties and posts and
provides custom treating services, primarily utilizing creosote,
copper naphthenate and pentachlorophenol at its wood treating
facility in Brierfield, Alabama. The consolidated sales for the
year ended December 31, 2020 totaled approximately US$56
million.
“This acquisition will enhance Stella-Jones’
offerings and expand our capability to supply the needs of North
America’s utility pole industry,” said Eric Vachon, President and
CEO of Stella-Jones. “The addition of Cahaba Pressure will add to
our capacity, further support the preservative offering to our
customers and optimize the overall efficiency of our continental
network.”
The transaction is scheduled to close prior the
end of December 2021 and is subject to customary closing
conditions. Stella-Jones intends to finance the transaction with
its existing credit facilities.
ABOUT STELLA-JONESStella-Jones
Inc. (TSX: SJ) is a leading producer and marketer of
pressure-treated wood products. The Company supplies North
America’s electrical utilities and telecommunication companies with
utility poles, and the continent’s railroad operators with railway
ties and timbers. Stella-Jones also manufactures and distributes
residential lumber and accessories to retailers for outdoor
applications, as well as industrial products for construction and
marine 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 concerning the proposed acquisition
described herein. These statements are based on suppositions, risks
and uncertainties as well as on management's best possible
evaluation of future events. Such risks and uncertainties include,
without excluding other considerations, the failure to satisfy
closing conditions and the failure to complete or delay in
completing the proposed acquisition for any other reason. As a
result, readers are advised that actual results may differ from
expected results and should not place undue reliance on
forward-looking information.
Source: |
Stella-Jones Inc. |
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Contacts: |
Silvana Travaglini, CPA,
CA |
Pierre Boucher, CPA,
CMA |
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Senior Vice-President and Chief
Financial Officer Stella-Jones |
Jennifer McCaughey,
CFA MaisonBrison CommunicationsTel.:
(514) 731-0000 |
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Tel.: (514) 940-8660 |
pierre@maisonbrison.com |
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stravaglini@stella-jones.com |
jennifer@maisonbrison.com |
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