Stella-Jones announces execution of definitive agreement to acquire Cahaba Timber
November 03 2021 - 5:42PM
Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”)
announced today that it has entered into a definitive agreement to
purchase the shares of Cahaba Timber, Inc. (“Cahaba Timber”)
through its U.S. subsidiary for US$36.5 million, including working
capital, which is currently estimated at US$4 million.
Cahaba Timber is a well-established producer of
treated poles and pilings, primarily using CCA, CCA ET Clear and
CCA ET Brown and engages in raw material procurement at its
treating operations in Brierfield, Alabama. Cahaba Timber’s sales
for the year ended December 31, 2020 reached approximately US$41
million.
“The acquisition of Cahaba Timber will allow
Stella-Jones to enhance its offerings in the North American wood
treating industry and is consistent with our objective of
continuing to increase shareholder value through accretive
acquisitions,” said Eric Vachon, President and CEO of
Stella-Jones.
The transaction is expected to close before the
end of December 2021 and is subject to customary closing
conditions. Stella-Jones plans to finance the transaction through
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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