Stella-Jones Acquires Thompson Industries
Montréal, Québec, Canada, 07 December 2011 –- Stella-Jones Inc. (TSX: SJ) today announced that it has completed the acquisition of Thompson Industries, Inc., a provider of treated wood products to the railroad industry.
Founded in 1981, Thompson produces treated wood products, mainly railway ties and timbers, at a facility in Russellville, Arkansas. Thompson’s sales for its fiscal year ended 30 September 2011, were approximately USD 49.0 million. The purchase price totalled approximately USD 39.0 million, subject to post closing adjustments. Stella-Jones financed the acquisition through existing credit facilities and an unsecured vendor note of USD 6.5 million.
“The acquisition of Thompson further enhances Stella-Jones’ status as a leading provider of treated wood products and services to the North American railroad industry. More importantly, we expect the transaction to be immediately accretive to earnings and to yield synergies, as our continental network will benefit from greater operating efficiencies,” said Brian McManus, president and chief executive officer of 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, and residential lumber to retailers and wholesalers for outdoor applications. The company’s common shares are listed on the Toronto Stock Exchange.