Monday, April 05, 2010

Stella-Jones completes acquisition of Tangent Rail Corporation

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Stella-Jones Inc. has completed the acquisition of Tangent Rail Corporation, a provider of wood crosstie supply chain services to the railroad industry. This acquisition expands Stella-Jones' capabilities within the U.S. railway tie market and provides the company with coal tar distillation operations. Stella-Jones' North American wood treating infrastructure now consists of 19 facilities, 11 of which are located in the United States.

Tangent serves the railroad industry with treated wood products, mainly railway ties, through facilities located in Warrior, Ala.; Terre Haute and Winslow, Ind.; Alexandria, La., and McAlisterville, Pa. The wood preservative, creosote, is produced at its distilleries in Terre Haute and Memphis, Tenn. Life-cycle solutions, consisting of tie pickup and tie disposal, are carried out at three facilities in Alabama, Minnesota and North Carolina

"Tangent has built a reputation for excellence on the basis of a corporate culture that mirrors our own," said Brian McManus, president and chief executive officer of Stella-Jones. "This strategic acquisition solidifies our position as the second largest North American railway tie provider and takes Stella-Jones to a still higher level of product offerings and services. We expect the transaction to yield appreciable synergies and to be immediately accretive to earnings."

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