Lufkin Creosoting produces treated poles and timbers at its wood treating facility in Lufkin, Texas. Its consolidated sales for the year ended December 31, 2015 reached approximately $34.2 million.
The definitive share purchase agreement provides for a purchase price of $37.5 million which includes $5 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.