Stella-Jones announces execution of definitive agreement to acquire Cahaba Timber

MONTREAL, Nov. 03, 2021 (GLOBE NEWSWIRE) — Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) announced today that it has entered into a definitive agreement to purchase the shares of Cahaba Timber, Inc. (“Cahaba Timber”) through its U.S. subsidiary for US$36.5 million, including working capital, which is currently 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.

“The acquisition of Cahaba Timber will allow Stella-Jones to enhance its offerings in the North American wood treating industry and is consistent with our objective of continuing to increase shareholder value through accretive acquisitions,” said Eric Vachon, President and CEO of Stella-Jones.

The transaction is expected to close before the end of December 2021 and is subject to customary closing conditions. Stella-Jones plans to finance the transaction through its existing credit facilities.

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.

Except for historical information provided herein, this press release contains information and statements of a forward-looking nature concerning the proposed acquisition described herein. These statements are based on suppositions, risks and uncertainties as well as on management’s best possible evaluation of future events. Such risks and uncertainties include, without excluding other considerations, the failure to satisfy closing conditions and the failure to complete or delay in completing the proposed acquisition for any other reason. As a result, readers are advised that actual results may differ from expected results and should not place undue reliance on forward-looking information.

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