Stella-Jones announces Completion of its acquisition of Cahaba Timber
19 November 2021 - 9:39PM
Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”)
announced today that its U.S. subsidiary has completed its
previously announced acquisition of the shares of Cahaba Timber,
Inc. (“Cahaba Timber”). The purchase price totaled US$36.5 million,
including working capital, which is estimated at US$4 million.
Cahaba Timber is a well-established producer of
treated poles and pilings, primarily using CCA, CCA ET Clear and
CCA ET Brown and engages in raw material procurement at its
treating operations in Brierfield, Alabama. Cahaba Timber’s sales
for the year ended December 31, 2020 reached approximately US$41
million.
“We are excited to welcome the employees of
Cahaba Timber to the Stella-Jones family,” said Eric Vachon,
President and CEO of Stella-Jones. “We expect the acquisition of
Cahaba Timber to yield synergies and to be immediately accreditive
to earnings as we continue to improve Stella-Jones’ ability to
provide the North American utility industry with high quality
treated wood products.”
ABOUT
STELLA-JONESStella-Jones Inc. (TSX: SJ) is a
leading producer and marketer of pressure-treated wood products.
The Company supplies North America’s electrical utilities and
telecommunication companies with utility poles, and the continent’s
railroad operators with railway ties and timbers. Stella-Jones also
manufactures and distributes residential lumber and accessories to
retailers for outdoor applications, as well as industrial products
for construction and marine applications. The Company’s common
shares are listed on the Toronto Stock Exchange.
Except for historical information provided
herein, this press release may contain information and statements
of a forward-looking nature concerning the future performance of
the Company. These statements are based on suppositions and
uncertainties as well as on management's best possible evaluation
of future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in
customer demand for the Company’s products and services, the impact
of price pressures exerted by competitors, the ability of the
Company to raise the capital required for acquisitions, and general
market trends or economic changes and the impact of the coronavirus
pandemic thereon. As a result, readers are advised that actual
results may differ from expected and should not place undue
reliance on forward-looking information.
Source: |
Stella-Jones Inc. |
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Contacts: |
Silvana Travaglini, CPA,
CA |
Pierre Boucher, CPA,
CMA |
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Senior Vice-President and |
Jennifer McCaughey,
CFA |
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Chief Financial
Officer |
MaisonBrison
Communications |
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Stella-Jones |
Tel.: (514)
731-0000 |
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Tel.: (514) 940-8660 |
pierre@maisonbrison.com |
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stravaglini@stella-jones.com |
jennifer@maisonbrison.com |
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