Stella-Jones Inc. announced that its wholly-owned subsidiary, McFarland Cascade Holdings, Inc., has signed a non-binding letter of intent to purchase the shares of 440 Investments, LLC, the parent company of Kisatchie Treating, LLC, Kisatchie Pole & Piling, LLC, Kisatchie Trucking, LLC and Kisatchie Midnight Express, LLC (collectively, "Kisatchie"). The transaction, if finalized, is expected to close in April 2016.
Feb 03, 2016. /Lesprom Network/.
Stella-Jones Inc. announced that its wholly-owned subsidiary, McFarland Cascade Holdings, Inc., has signed a non-binding letter of intent to purchase the shares of 440 Investments, LLC, the parent company of Kisatchie Treating, LLC, Kisatchie Pole & Piling, LLC, Kisatchie Trucking, LLC and Kisatchie Midnight Express, LLC (collectively, "Kisatchie").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 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.
