Stella-Jones Announces Completion of Its Acquisition of Cahaba Timber

Stella-Jones Inc. (“Stella-Jones” or the “Company”) announced that its U.S. subsidiary has completed its previously announced acquisition of the shares of Cahaba Timber, Inc. (“Cahaba Timber”). The purchase price totaled US$36.5 million, including working capital, which is estimated at US$4 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’s sales for the year ended December 31, 2020 reached approximately US$41 million.

“We are excited to welcome the employees of Cahaba Timber to the Stella-Jones family,” said Eric Vachon, President and CEO of Stella-Jones. “We expect the acquisition of Cahaba Timber to yield synergies and to be immediately accreditive to earnings as we continue to improve Stella-Jones’ ability to provide the North American utility industry with high quality treated wood products.”

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.

Contact:

Silvana Travaglini – Senior Vice President & CFO – stravaglini@stella-jones.com – (514) 940-8660

Source: Stella-Jones Inc.