Tuesday, October 08, 2013

Stella-Jones to acquire wood treating facilities in three states

Stella-Jones Inc. has signed a definitive agreement to acquire the operating assets of Arizona Pacific Wood Preserving, Inc., Nevada Wood Preserving, Inc., and Pacific Wood Preserving of Oregon, Inc.

 

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, 2012, and reached approximately $52.4 million. The assets of Pacific Wood Preserving of Bakersfield, Inc., are not being acquired and existing shareholders will continue to own this operating business.

The definitive agreement provides for a purchase price of approximately $33.0 million plus the sellers' net working capital at closing (estimated at approximately $24.0 million). The transaction is expected to close in November 2013 and is subject to satisfactory completion of environmental due diligence, assignment of certain governmental authorizations and permits and other customary closing conditions. Stella-Jones plans to finance the acquisition through a combination of its existing credit facilities and a vendor note of $7.0 million.

"The acquisition of these facilities will further enhance Stella-Jones' offerings and expand its capability to supply the needs of North America's railroad and utility pole industries," said Brian McManus, president and chief executive officer of Stella-Jones.

blog comments powered by Disqus