Stella-Jones Inc. announced that its wholly-owned subsidiary, McFarland Cascade Holdings, Inc., has completed the acquisition of the equity interests of 440 Investments, LLC, the parent company of Kisatchie Treating, LLC, Kisatchie Pole & Piling, LLC, Kisatchie Trucking, LLC and Kisatchie Midnight Express, LLC (collectively, "Kisatchie").
Kisatchie produces treated poles, pilings and timbers, with two wood treating facilities in Noble and Pineville, Louisiana. Kisatchie's consolidated sales for the year ended December 31, 2015 reached approximately $51.8 million.
The purchase price was $42.5 million, including $10 million of working capital, and is subject to post-closing adjustments. Stella-Jones has financed the transaction through a combination of debt financing and a vendor note.
"The acquisition of Kisatchie allows Stella-Jones to further enhance its offerings in the North American wood treating industry. It is also consistent with our objective of steadily increasing shareholder value through selective acquisitions. We expect this transaction to yield synergies and to be immediately accretive to earnings, as we continue to optimize the overall efficiency of our continental network," said Brian McManus, President and CEO of Stella-Jones.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
