MONTREAL, Nov. 19, 2021 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) today announced that it has completed the previously disclosed acquisition of the shares of Cahaba Pressure Treated Forest Products, Inc. (“Cahaba Pressure”) through its U.S. subsidiary. The purchase price totaled US$66 million, including working capital, which is estimated at US$8 million.
Cahaba Pressure manufactures, distributes and sells treated and untreated wood poles, crossties and posts and provides custom treating services, primarily utilizing creosote, copper naphthenate and pentachlorophenol at its wood treating facility in Brierfield, Alabama. The consolidated sales for the year ended December 31, 2020 totaled approximately US$56 million.
“We are pleased to welcome the employees of Cahaba Pressure to Stella-Jones,” stated Eric Vachon, President and CEO of Stella-Jones. “This acquisition strengthens our leadership position in the product categories that we serve and supports our strategy to drive continued growth.”
Stella-Jones Inc. (TSX: SJ) is a leading producer and marketer of pressure-treated wood products. The Company supplies North America’s electrical utilities and telecommunication companies with utility poles, and the continent’s railroad operators with railway ties and timbers. Stella-Jones also manufactures and distributes residential lumber and accessories to retailers 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 may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company’s products and services, the impact of price pressures exerted by competitors, the ability of the Company to raise the capital required for acquisitions, and general market trends or economic changes and the impact of the coronavirus pandemic thereon. As a result, readers are advised that actual results may differ from expected and should not place undue reliance on forward-looking information.