Stella-Jones enters agreement to acquire wood treating facilities of Boatright Railroad Products in Montevallo and Clanton, Alabama; Quebec-based company expects to close purchase of treated rail tie and bridge timbers distributor in Q2
March 18, 2014
– Stella-Jones Inc. (SJ.TO) today announced that it has signed a non-binding letter of intent to acquire the wood treating facilities of Boatright Railroad Products, Inc. ("Boatright") located in Montevallo and Clanton, Alabama. Boatright manufactures, sells and distributes creosote and borate-treated crossties as well as switch ties, tie plugs and bridge timbers to railroad operators.
The transaction, if finalized, is expected to close during the latter part of the second quarter of 2014 and is subject to customary closing conditions, including signature of a definitive asset purchase agreement and satisfactory due diligence. Stella-Jones plans to finance the transaction through existing credit facilities.
Stella-Jones Inc. (SJ.TO) is a leading producer and marketer of pressure treated wood products. The Company supplies North America's railroad operators with railway ties and timbers, and the continent's electrical utilities and telecommunication companies with utility poles. Stella-Jones also provides residential lumber to retailers and wholesalers 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.