The purchase price was approximately $60 million, plus the sellers' inventory at closing, estimated at $9 million, subject to post-closing adjustments. Stella-Jones has financed the transaction through a combination of its existing committed revolving credit facility, which has been increased to $450 million, and a five-year unsecured promissory note of $15 million. An amount of $20 million is being held in escrow pending the formal title transfer of the Montevallo assets, which shall occur concurrently with the issue to Stella-Jones of certain governmental permits relating to the facility.
"The acquisition of these facilities further enhances our range of treated wood products and services to the North American railroad industry. We expect this transaction to yield synergies and to be immediately accretive to earnings, as we continue to optimize the overall efficiency of our continental network," said Brian McManus, president and chief executive officer of Stella-Jones Inc.