Stella-Jones Inc. completes the acquisition of substantially all of the assets of Shelburne Wood Protection Ltd. (“SWP”), located in Shelburne, Ontario, Canada. The SWP plant is specialized in the treatment of residential lumber.
The total consideration for the acquisition was approximately $9.2 million of which $8.5 million was financed through Stella-Jones’ syndicated credit facilities and $0.7 million was recorded as a balance of purchase price.
The balance of purchase price bears no interest, will be paid to the seller in two equal amounts on the first and second anniversary of the transaction and was recorded at fair value using an effective interest rate of 3.31%. The SWP acquisition will be accounted as an acquisition of a group of assets.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
