Stella-Jones Inc. has entered into an agreement to purchase the shares of Cahaba Pressure Treated Forest Products, Inc. through its U.S. subsidiary for $66 million, including working capital, which is currently estimated at $8 million.
Cahaba Pressure manufactures, distributes and sells treated and untreated wood poles, crossties and posts and provides custom treating services, primarily utilizing creosote, copper naphthenate and pentachlorophenol at its wood treating facility in Brierfield, Alabama. The consolidated sales for the year ended December 31, 2020 totaled approximately $56 million.
“This acquisition will enhance Stella-Jones’ offerings and expand our capability to supply the needs of North America’s utility pole industry,” said Eric Vachon, President and CEO of Stella-Jones. “The addition of Cahaba Pressure will add to our capacity, further support the preservative offering to our customers and optimize the overall efficiency of our continental network”.
The transaction is scheduled to close prior the end of December 2021 and is subject to customary closing conditions. Stella-Jones intends to finance the transaction with its existing credit facilities.
Stella-Jones Inc. is a leading producer and marketer of pressure-treated wood products.
