- Stella-Jones (SJ) has signed an agreement with Texas Electric Cooperatives (TEC)
- The agreement empowers Stella-Jones to purchase substantially all of the assets employed in TEC’s wood utility pole manufacturing business
- The planned total purchase price is US$28 million plus inventories of approximately $4 million
- TEC produces southern yellow pine utility poles using Creosote and CCA preservatives at its wood treating facility in Jasper, Texas
- Stella-Jones Inc produces and sells lumber and wood products
- Stella-Jones Inc. is down 1.71 per cent, trading at $40.81 at 2:33 PM ET
Stella-Jones (SJ) has signed a definitive agreement to purchase the wood utility pole manufacturing assets of Texas Electric Cooperatives (TEC).
The planned total purchase price of the assets is US$28 million plus inventories of approximately $4 million.
TEC produces southern yellow pine utility poles using Creosote and CCA preservatives at its wood-treating facility in Jasper, Texas.
It is estimated that wood pole sales for the year ended December 31, 2021, totalled $28 million.
“This acquisition, which adds a 43rdmanufacturing facility to our network, will enhance Stella-Jones’ offerings and expand our capacity to supply the growing needs of North America’s utility pole industry while optimizing the overall efficiency of our continental network,” stated Eric Vachon, President and CEO of Stella-Jones.
“We look forward to welcoming the Jasper facility employees to our team of over 2,400 employees across North America,” he added.
The transaction is scheduled to close before the end of 2022 and is subject to customary closing conditions.
Stella-Jones intends to finance the transaction with its existing credit facilities.
Stella-Jones Inc produces and sells lumber and wood products. It supplies all the continent’s major electrical utilities and telecommunication companies with wood utility poles.
Stella-Jones Inc. is down 1.71 per cent, trading at $40.81 at 2:33 PM ET.