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 definitive securities purchase agreement provides for a purchase price of $42.5 million which includes $10 million of working capital and is subject to adjustments.
The transaction is expected to close during the 2Q 2016 and is subject to customary closing conditions. Stella-Jones plans to finance the transaction through a combination of debt financing and a vendor note.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
