Stella-Jones intends to acquire McFarland Cascade Holdings

Nov 06, 2012. /Lesprom Network/. Stella-Jones Inc. it has signed a non-binding letter of intent to acquire the shares of McFarland Cascade Holdings, Inc., a provider of treated wood products based in the state of Washington. The letter of intent contemplates a purchase price of approximately $230 million, which includes approximately $113 million of net working capital and the assumption of certain liabilities, as the company said in the press release received by Lesprom Network. The transaction, if finalized, is expected to close in November 2012 and is subject to customary closing conditions, including entry into a definitive purchase agreement, customary approvals and satisfactory due diligence. Stella-Jones has already received U.S. antitrust clearance with regard to the proposed acquisition. Stella-Jones plans to finance the transaction through a combination of term financing and equity. Founded in 1916, 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 potential acquisition of McFarland would further enhance the range of Stella-Jones' offerings in the North American wood treating industry. A strong commitment to product quality and customer service has been a hallmark of McFarland's business operations, which Stella-Jones is committed to continue and build on," 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.