Stella-Jones Announces Execution of Definitive Agreement for McFarland Cascade Acquisition
November 21 2012 - 4:39PM
Marketwired
Stella-Jones Inc. (TSX:SJ) ("Stella-Jones" or the "Company") today
announced that it has signed a definitive agreement to acquire the
shares of McFarland Cascade Holdings, Inc. ("McFarland"), a
provider of treated wood products based in the state of Washington.
Stella-Jones announced on November 2, 2012 that it had signed a
non-binding letter of intent to acquire McFarland. The definitive
agreement provides for a purchase price of approximately US$250.0
million, up from the US$230.0 million previously disclosed, as a
result of an increase of approximately US$14.0 million in delivered
working capital and other applicable purchase price adjustments.
Closing of the acquisition is expected to occur on or about
November 30, 2012 and is subject to customary closing
conditions.
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 railroad operators with railway ties, timbers and
recycling services; and the continent's electrical utilities and
telecommunications companies with utility poles. Stella-Jones also
provides industrial products and services for construction and
marine applications, as well as residential lumber to retailers and
wholesalers for outdoor applications. The Company's common shares
are listed on the Toronto Stock Exchange.
ABOUT MCFARLAND CASCADE
Founded in 1916, McFarland is one of North America's
long-standing suppliers of utility poles, as well as crossarms,
piling and crane mats. It is also a provider of treated lumber for
outdoor home projects, including composite decking, railings and
related accessories. It serves its customer base through four wood
treating facilities located in Tacoma, Washington; Eugene, Oregon;
Electric Mills, Mississippi; and Galloway, British Columbia; as
well as through an extensive distribution network. McFarland's
sales for its fiscal year ended December 31, 2011 were
approximately US$255.0 million. Sales for its fiscal year ended
December 31, 2012 are expected to reach approximately US$280.0
million and earnings before interest, taxes, depreciation and
amortization ("EBITDA") for 2012 are expected to be approximately
US$29.0 million.
Except for historical information provided herein, this press
release contains information and statements of a forward-looking
nature concerning the acquisition of McFarland. Forward looking
information also includes information relating to McFarland's sales
and EBITDA for its fiscal year ended December 31, 2012. These
statements are based on suppositions, uncertainties and other
factors as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, satisfaction of closing conditions, failure to
complete or delay in completing the acquisition of McFarland for
any other reason, fluctuations in quarterly results, evolution in
customer demand, the impact of price pressures exerted by
competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from
expected results and should not place undue reliance on
forward-looking information.
Contacts: Eric Vachon, CPA, CA Senior Vice-President and Chief
Financial Officer (514) 940-3903evachon@stella-jones.com Martin
Goulet, CFA MaisonBrison Communications (514)
731-0000martin@maisonbrison.com
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