Stella-Jones signs an agreement to acquire the wood pole manufacturing operations of Texas Electric Cooperatives, Inc.

MONTREAL, Sept. 15, 2022 (GLOBE NEWSWIRE) — Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) announced today that it has entered into a definitive agreement to to acquire substantially all of the assets used in the utility wood pole manufacturing business of Texas Electric Cooperatives, Inc. (“TEC”) for a total purchase price of $28 million US in addition to inventory of approximately US$4 million.

TEC produces Southern Yellow Pine poles for utility companies at its wood treating facility in Jasper, Texas using creosote and chromated copper arsenate preservatives. Wood pole sales for the year ended December 31, 2021 totaled US$28 million. “This acquisition will add 43^e manufacturing facility to our network, will enhance Stella-Jones’ offering and increase our ability to meet the growing needs of the North American utility pole industry, while optimizing the overall efficiency of our network continental,” said Éric Vachon, President and CEO of Stella-Jones. “We look forward to welcoming employees from the Jasper facility to our team of more than 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 expects to finance the transaction through its existing credit facilities.

ABOUT STELLA JONES
Stella-Jones Inc. (TSX: SJ) is North America’s leading manufacturer of pressure-treated wood products. The Company supplies timber poles to all of the continent’s major electric utilities and telecommunications companies, as well as railway sleepers and beams to operators of Class 1 railways, short lines and commercial railways. Stella-Jones also supplies industrial products, including lumber for railway bridges and level crossings, pilings for marine construction, piles for foundations, construction lumber and coal tar products. The Company is also engaged in the manufacture of treated lumber and accessories for residential use of the highest quality, which it distributes to Canadian and American retailers for exterior applications. A significant part of this line of business is to serve the Canadian market through its national manufacturing and distribution network. The Company’s common shares are listed on the Toronto Stock Exchange.

Except for historical information provided herein, this press release contains information and statements of a forward-looking nature with respect to the proposed acquisition described herein. These statements are based on assumptions, risks and uncertainties, and management’s best possible assessment of future events. These risks and uncertainties include, among other things, the failure to satisfy the closing conditions and the failure to complete the contemplated acquisition or to complete it within the expected timeframe for any other reason. Accordingly, readers are cautioned that actual results may differ from anticipated results, and should not place undue reliance on any forward-looking information.