By: The Working Forest Staff
Stella-Jones Inc. has announced it has entered into a definitive agreement to purchase the shares of Cahaba Timber, Inc 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.