The purchase price was $60 million, including $16.7 million of estimated working capital, subject to post-closing adjustments. Stella-Jones has financed the acquisition through its existing revolving credit facility.
"The acquisition of Ram Forest Group further enhances Stella-Jones' offering of treated wood products to the retail market. We expect this transaction to yield synergies and to be immediately accretive to earnings, as we aim to optimize operating efficiency across our continental network," said Brian McManus, President and CEO of Stella-Jones.
Through its wholly-owned subsidiaries, Ram Forest Products Inc. and Trent Timber Treating Ltd., Ram Forest Group manufactures and sells pressure treated wood products and accessories to the retail building materials industry.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
