Lufkin Creosoting produces treated poles and timbers at its wood treating facility in Lufkin, Texas. Its consolidated sales for the year ended December 31, 2015 reached approximately $34.2 million.
The transaction, if finalized, is expected to close in April 2016 and is subject to customary conditions, including satisfactory due diligence and signature of a definitive share purchase agreement.
Stella-Jones plans to finance the transaction through a combination of debt financing and a vendor note and may consider proceeding with an equity offering depending on market conditions.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.