Stella-Jones Completes Acquisition of Cahaba Pressure Treated Forest Products

Stella-Jones Inc. (“Stella-Jones” or the “Company”) announced that it has completed the previously disclosed acquisition of the shares of Cahaba Pressure Treated Forest Products, Inc. (“Cahaba Pressure”) through its U.S. subsidiary. The purchase price totaled US$66 million, including working capital, which is estimated at US$8 million.

Cahaba Pressure manufactures, distributes and sells treated and untreated wood poles, crossties and posts and provides custom treating services, primarily utilizing creosote, copper naphthenate and pentachlorophenol at its wood treating facility in Brierfield, Alabama. The consolidated sales for the year ended December 31, 2020 totaled approximately US$56 million.

“We are pleased to welcome the employees of Cahaba Pressure to Stella-Jones,” stated Eric Vachon, President and CEO of Stella-Jones. “This acquisition strengthens our leadership position in the product categories that we serve and supports our strategy to drive continued growth.”

About Stella-Jones

Stella-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.

Contact:

Silvana Travaglini – Senior Vice President & CFO – stravaglini@stella-jones.com – (514) 940-8660

Source: Stella-Jones Inc.