These businesses consist of the manufacture of treated wood utility poles and crossties, along with a variety of lumber-related products. Sales for the fiscal year ended October 31, 2013, reached approximately $60.3 million.
The purchase price was approximately $33.0 million, plus the sellers' net working capital at closing, estimated at approximately $23.7 million, subject to post closing adjustments.
"The acquisition of these facilities allows Stella-Jones to further enhance its offerings in the North American wood treating industry and expand its capability to supply the continent's railroad and utility industries. We expect this transaction to be immediately accretive to earnings and to yield synergies, as we continue to optimize operating efficiencies across our continental network," said Brian McManus, president and chief executive officer of Stella-Jones.