Stella-Jones Signs Agreement to Purchase Wood Pole Manufacturing Business of Texas Electric Cooperatives, Inc.
Stella-Jones Inc. (“Stella-Jones” or the “Company”) announced that it has entered into a definitive agreement to purchase substantially all of the assets employed in the wood utility pole manufacturing business of Texas Electric Cooperatives, Inc. (“TEC”) for a total purchase price of US$28M plus inventories of approximately US$4M.
TEC produces southern yellow pine utility poles using Creosote and CCA preservatives at its wood treating facility in Jasper, Texas. Wood pole sales for the year ended December 31, 2021, totaled US$28 million. “This acquisition, which adds a 43rd manufacturing facility to our network, will enhance Stella-Jones’ offerings and expand our capacity to supply the growing needs of North America’s utility pole industry, while optimizing the overall efficiency of our continental network”, said Eric Vachon, President and CEO of Stella-Jones. “We look forward to welcoming the Jasper facility employees to our team of over 2,400 employees across North America.”
The transaction is scheduled to close prior to the end of 2022 and is subject to customary closing conditions. Stella-Jones intends to finance the transaction with its existing credit facilities.
Stella-Jones Inc. (TSX: SJ) is North America’s leading producer of pressure-treated wood products. It supplies all the continent’s major electrical utilities and telecommunication companies with wood utility poles and North America’s Class 1, short line and commercial railroad operators with railway ties and timbers. StellaJones also provides industrial products, which include wood for railway bridges and crossings, marine and foundation pilings, construction timbers and coal tar-based products. Additionally, the Company manufactures and distributes premium treated residential lumber and accessories to Canadian and American retailers for outdoor applications, with a significant portion of the business devoted to servicing the Canadian market through its national manufacturing and distribution network. The Company’s common shares are listed on the Toronto Stock Exchange.
Silvana Travaglini – Senior Vice-President and Chief Financial Officer – email@example.com – (514) 934-8660
Source: Stella-Jones Inc.