Oct 11, 2011. /Lesprom Network/. Stella-Jones Inc. has signed a non-binding letter of intent to acquire Thompson Industries, Inc., a provider of treated wood products to the railroad industry, as the company said in a press release received by Lesprom Network. The letter of intent contemplates a total purchase price of approximately $41 million. The transaction, if finalized, is expected to close in December 2011 and is subject to customary closing conditions, including entry into a definitive purchase agreement and satisfactory due diligence. Stella-Jones plans to finance the acquisition through existing credit facilities. Thompson produces treated wood products, mainly railway ties and timbers, at a facility located in Russellville, Arkansas. Thompson's sales for its fiscal year ended September 30, 2011 are expected to reach approximately $49 million. "The acquisition of Thompson Industries would further enhance Stella-Jones' product and service offering to the North American railroad industry," said Brian McManus, President and CEO of Stella-Jones. "Thompson enjoys solid business relationships and is well recognized for its high-quality operations." Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products. The Company supplies North America's railroad operators with railway ties, timbers and recycling services; and the continent's electrical utilities and telecommunications companies with utility poles.