Oct 08, 2013. /Lesprom Network/. Stella-Jones Inc. has signed a definitive agreement to acquire, through its wholly-owned U.S. subsidiaries, substantially all of the operating assets employed in the businesses of Arizona Pacific Wood Preserving, Inc., Nevada Wood Preserving, Inc. and Pacific Wood Preserving of Oregon, Inc. (commonly referred to as The Pacific Wood Preserving Companiesâ) conducted at their wood treating plants in Oregon, Nevada and Arizona and their wood concentration yard in Texas. These businesses consist of the manufacture of treated wood utility poles and railway ties, along with a variety of lumber related products, as the company said in the press release received by Lesprom Network. 

Sales for the fiscal year ended October 31, 2012 reached approximately $52.4 million. The assets of Pacific Wood Preserving of Bakersfield, Inc. are not being acquired and existing shareholders will continue to own this operating business.

The definitive agreement provides for a purchase price of approximately $33 million plus the sellers' net working capital at closing (estimated at approximately $24 million). The transaction is expected to close in November 2013 and is subject to satisfactory completion of environmental due diligence, assignment of certain governmental authorizations and permits and other customary closing conditions. Stella-Jones plans to finance the acquisition through a combination of its existing credit facilities and a vendor note of $7 million.

"The acquisition of these facilities will further enhance Stella-Jones' offerings and expand its capability to supply the needs of North America's railroad and utility pole industries" said Brian McManus, President and CEO of Stella-Jones.

Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.