Monday, November 18, 2013

Stella-Jones completes acquisition of The Pacific Wood Preserving Companies

Stella-Jones Inc. has completed the acquisition of substantially all of the operating assets of Arizona Pacific Wood Preserving, Inc., Nevada Wood Preserving, Inc., and Pacific Wood Preserving of Oregon, Inc., (commonly referred to as The Pacific Wood Preserving Companies®) conducted at their wood treating plants in Oregon, Nevada and Arizona and their wood concentration yard in Texas.

 

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.

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