Thursday, January 12, 2012

Gross & Janes acquires tie production facility and timberland assets

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Gross & Janes Co. acquired a crosstie production facility in Taylor, Ark., and approximately 4,200 acres of hardwood timber in Arkansas and Louisiana from Tucker Lumber Company and Smith-Turner Land Company. Terms of the deal, which was completed on January 9, 2012, were not disclosed.

"The acquisition of hardwood timber gives us entry into the vertical integration of the railroad crosstie industry while also reducing our risk in the event of a shortage of timber for our mills," said Michael Pourney, president and CEO of Gross & Janes Co. "At the same time, the acquisition of the Taylor facility gives us the additional capacity we need to serve our growing customer base in that area."

The Taylor plant will be used to process approximately 400,000 ties annually, with a large portion of those being pre-treated with borate to fulfill customer demand.

"This is a good fit for both parties," said A. Lamar Smith, a co-owner of Tucker Lumber Company and Smith-Turner Land Company along with John Turner. "We met the folks at Gross & Janes and liked them and I think the feeling is mutual. This sale will allow us to concentrate on our core business of land and timber."

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