Stella-Jones Inc. announced that its wholly-owned subsidiary, McFarland Cascade Holdings, Inc., has signed a definitive agreement to purchase the shares of Lufkin Creosoting Co., Inc.
Lufkin Creosoting produces treated poles and timbers at its wood treating facility in Lufkin, Texas. Its consolidated sales for the year ended December 31, 2015 reached approximately $34.2 million.
The definitive share purchase agreement provides for a purchase price of $37.5 million which includes $5 million of working capital and is subject to adjustments.
The transaction is expected to close during the 2Q 2016 and is subject to customary closing conditions. Stella-Jones plans to finance the transaction through a combination of debt financing and a vendor note.
Stella-Jones Inc. is a leading producer and marketer of pressure treated wood products.
Source : lesprom.com