Stella-Jones completed the acquisition of McFarland Cascade Holdings

Dec 03, 2012. /Lesprom Network/. Stella-Jones Inc. has completed the acquisition of McFarland Cascade Holdings, Inc., a provider of treated wood products based in the state of Washington, as the company said in the press release received by Lesprom Network. The purchase price amounted to approximately $250 million, subject to post closing adjustments, including approximately $125 million of net working capital and the assumption of certain liabilities. Financing for the transaction has been secured through an $80 million private placement of subscription receipts, which successfully closed earlier today, as well as through term financing resulting from an increase in the Company's committed revolving credit facility to $350 million. The subscription receipts will be exchanged as at the close of business today for common shares in the share capital of the Company on the basis of one common share per subscription receipt. Holders of subscription receipts do not need to take any action in order to receive the common shares to which they are entitled. As the subscription receipts were sold on a private placement basis, these common shares will be subject to regulatory restrictions on resale until March 31, 2013. McFarland is one of North America's long-standing suppliers of utility poles, as well as crossarms, piling and crane mats. It is also a provider of treated lumber for outdoor home projects, including composite decking, railings and related accessories. It serves its customer base through four wood treating facilities located in Tacoma, Washington; Eugene, Oregon; Electric Mills, Mississippi; and Galloway, British Columbia; as well as through an extensive distribution network. "The acquisition of McFarland further enhances the range of Stella-Jones' offerings in the North American wood treating industry. We expect the transaction to be accretive to earnings and to yield synergies, as we remain focused on optimizing operating efficiency across 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. The Company supplies North America's railroad operators with railway ties, timbers and recycling services; and the continent's electrical utilities and telecommunications companies with utility poles.