Stella-Jones Inc. (TSX:SJ) today announced that it has completed the acquisition
of the wood treating facilities of Boatright Railroad Products, Inc. located in
Montevallo and Clanton, Alabama. These facilities manufacture, sell and
distribute creosote and borate-treated crossties as well as switch ties, tie
plugs and bridge timbers to railroads and railroad contractors. Sales for the
12-month period ended December 31, 2013 reached US$73.5 million.


The purchase price was approximately US$60.0 million, plus the sellers'
inventory at closing, estimated at US$9.0 million, subject to post-closing
adjustments. Stella-Jones has financed the transaction through a combination of
its existing committed revolving credit facility, which has been increased to
$450.0 million, and a five-year unsecured promissory note of US$15.0 million. An
amount of US$20.0 million is being held in escrow pending the formal title
transfer of the Montevallo assets, which shall occur concurrently with the issue
to Stella-Jones, of certain governmental permits relating to the facility.


"The acquisition of these facilities further enhances our range of treated wood
products and services to the North American railroad industry. We expect this
transaction to yield synergies and to be immediately accretive to earnings, as
we continue to optimize the overall efficiency of our continental network," said
Brian McManus, President and Chief Executive Officer of Stella-Jones.


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 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.


Except for historical information provided herein, this press release contains
information and statements of a forward-looking nature, including information
relating to the Company's future earnings and to potential synergies resulting
from the acquisition of Boatright Railroad Products, Inc. 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, failure to obtain permits from the
relevant governmental authorities, fluctuations in quarterly results, evolution
in customer demand for the Company's products and services, the impact of price
pressures exerted by competitors, the ability of the Company to raise the
capital required for acquisitions, 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Source:
Stella-Jones Inc.


Eric Vachon, CPA, CA
Senior Vice-President and Chief Financial Officer
(514) 940-3903
evachon@stella-jones.com


Martin Goulet, CFA
MaisonBrison Communications
(514) 731-0000
martin@maisonbrison.com
Stella Jones (TSX:SJ)
Historical Stock Chart
From Dec 2024 to Dec 2024 Click Here for more Stella Jones Charts.
Stella Jones (TSX:SJ)
Historical Stock Chart
From Dec 2023 to Dec 2024 Click Here for more Stella Jones Charts.