February 09, 2006 08:00 ET
WESTMOUNT, QUEBEC--(CCNMatthews - Feb. 9, 2006) - Stella-Jones Inc. (TSX:SJ) today announced that it is currently in discussions with the shareholders of Bell Lumber & Pole Company ("Bell") with respect to a possible acquisition by Stella-Jones Inc. or an affiliate ("Stella-Jones") of all of the shares of Bell. A privately-held company, Bell is a manufacturer of wood utility poles in Canada and the United States and is also involved in the remanufacturing and treating of dimensional lumber in Alberta. Bell has annual sales of approximately US$60 million.
Stella-Jones and the shareholders of Bell have entered into a non-binding letter of intent relating to the proposed acquisition. The transaction is subject to customary conditions, including the entering into of definitive agreements and the completion of due diligence by Stella-Jones. It is anticipated that the proposed transaction, if finalized, would close by June 30, 2006.
Stella-Jones Inc. (TSX:SJ) is a leading North American producer and marketer of industrial treated wood products, specializing in the production of pressure treated railway ties as well as wood poles supplied to electrical utilities and telecommunications companies. Other principal products include marine and foundation pilings, construction timbers, highway guardrail posts and treated wood for bridges. The Company also specializes in providing customized services to lumber companies and wholesalers for the treatment of consumer lumber products for outdoor applications. The Company's common shares are listed on the Toronto Stock Exchange.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
Stella-Jones Inc.George T. Labelle, C.A.Senior Vice-President and Chief Financial Officer(514) firstname.lastname@example.org
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