Stella-Jones Announces Closing of Acquisition of Wood Treating Facilities in Oregon, Nevada and Arizona
MONTREAL, QUEBEC--(Marketwired - Nov 15, 2013) - Stella-Jones Inc. (SJ.TO) ("Stella-Jones" or the "Company") today announced that it has completed, through its wholly-owned U.S. subsidiaries, the acquisition of substantially all of the operating assets employed in the businesses 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 railway ties, along with a variety of lumber related products. Sales for the fiscal year ended October 31, 2013 reached approximately US$60.3 million.
The purchase price was approximately US$33.0 million, plus the sellers' net working capital at closing, estimated at approximately US$23.7 million, subject to post closing adjustments. Stella-Jones has financed the acquisition through a combination of its existing credit facilities and a vendor note of US$7.0 million.
"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.
ABOUT STELLA-JONES
Stella-Jones Inc. (SJ.TO) is a leading producer and marketer of pressure treated wood products. The Company supplies North America's railroad operators with railway ties and timbers, and the continent's electrical utilities and telecommunication companies with utility poles. Stella-Jones also provides residential lumber to retailers and wholesalers for outdoor applications, as well as industrial products for construction and marine applications. The Company's common shares are listed on the Toronto Stock Exchange.
Except for historical information provided herein, this press release contains information and statements of a forward-looking nature concerning the proposed acquisition described herein. These statements are based on suppositions, risks and uncertainties as well as on management's best possible evaluation of future events. Such risks and uncertainties include, without excluding other considerations, satisfaction of due diligence condition, failure to obtain consent from the relevant governmental authorities, both as referenced above, and satisfaction of other closing conditions and failure to complete the proposed acquisition for any other reason. As a result, readers are advised that actual results may differ from expected results and should not place undue reliance on forward-looking information.
