MONTREAL, Sept. 15, 2022 (GLOBE NEWSWIRE) — Stella Jones Inc. SJ (“Stella-Jones” or the “Company”) announced today that it has entered into a definitive agreement to purchase substantially all of the assets used in the timber pole manufacturing business of Texas Electric Cooperatives, Inc. (“TEC”) for an aggregate purchase price of $28 million plus reserves of approximately $4 million.
TEC manufactures power poles from southern yellow pine using creosote and CCA preservatives at its wood treatment facility in Jasper, Texas. Lumber pole sales for the year ended December 31, 2021 totaled $28 million. “This acquisition that adds 43approx Manufacturing facility into our network will enhance Stella-Jones offerings and expand our capacity to meet the growing needs of the North American power pole industry while optimizing the overall efficiency of our continental network,” said Eric Vachon, President and CEO of Stella-Jones Jones: “We look forward to welcoming the Jasper facility employees to our team of over 2,400 employees across North America.”
The transaction is expected to close before the end of 2022 and is subject to customary closing conditions. Stella-Jones intends to fund the transaction using its existing credit facilities.
AROUND STELLA JONES
Stella Jones Inc. SJ is North America’s leading manufacturer of pressure-treated wood products. It supplies all of the continent’s major electric utility and telecommunications companies with wooden power poles and North American operators of Class 1, short-distance and commercial railroads with railroad ties and timber. Stella-Jones also offers industrial products including lumber for railroad bridges and crossings, ship and foundation piles, lumber and coal tar based products. The Company also manufactures and distributes premium treated residential lumber and accessories to Canadian and American exterior retailers, with a significant portion of the business being maintenance of the…
