STELLA-JONES ANNOUNCES ACQUISITION OF BIBB COUNTY LEADING PRODUCER OF TREATED UTILITY POLES
On, November 3, 2021 Stella-Jones Inc. a Canadian corporation, announced the acquisition of Cahaba Pressure Treated Wood Products and Cahaba Timber, Inc., 12755 Montevallo Rd, Brierfield, AL 35035,
The company founded by brothers Kermit and Joe Stephens has been in continuous operation since 1964. It has remained under the control of the Stephens family of Brierfield. Originally started as Cahaba Timber the brothers added a treating business in the mid 1970’s and called it Cahaba Pressure Treated Wood Products. In the early 1980’s they began producing pressure treated utility poles. The company has experienced continuous growth and is now one of the leading employers in the Bibb County area. The company is also said to be the largest producer of treated utility poles, worldwide.
“Stella-Jones Inc.” of 3100 de la Côte-Vertu Boulevard / Suite 300, Saint-Laurent, Québec, H4R 2J8 are the new owners of Cahaba Pressure Treated Forrest Products in Bibb County, Alabama.
The following information was released on November 3 by Stella-Jones Inc.
Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or the “Company”) today announced that it has entered into an agreement to purchase the shares of Cahaba Pressure Treated Forest
Products, Inc. (“Cahaba Pressure”) through its U.S. subsidiary for US $66 million, including working capital, which is currently 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.
“This acquisition will enhance Stella-Jones’ offerings and expand our capability to supply the needs of North America’s utility pole industry,” said Eric Vachon, President and CEO of Stella-Jones. “The addition of Cahaba Pressure will add to our capacity, further support the preservative offering to our customers and optimize the overall efficiency of our continental network”.
Stella-Jones simultaneously announced the acquisition of Cahaba Timber, Inc. for the sum of US$36.5 million plus working capital of US$4 million.
The two purchases together add up to a total of US$114.5 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 sales for the year ended December 31, 2020 reached approximately US$41 million.
The aggregate annual sales for the two companies adds up to US$97 million. The two purchases together add up to a total of US$114.5 million.
In 2014 the Birmingham Business Journal reported that Stella-Jones acquired Boatright Railroad Products, the familiar Wilton, Alabama based producer of railroad cross and switch ties, for $60 million. The sale included the Wilton and Clanton operations of Boatright
The latest transaction is scheduled to close prior the end of December 2021 and is subject to customary closing conditions. Stella-Jones intends to finance the transaction with its existing credit facilities.
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.
Editor’s Note: This is a breaking news story. We will publish additional information as soon as it becomes available.
