MONTRÉAL, QUÉBEC--(Marketwired - March 18, 2014) - Stella-Jones Inc. (TSX:SJ) today announced that it has signed a non-binding letter of intent to acquire the wood treating facilities of Boatright Railroad Products, Inc. ("Boatright") located in Montevallo and Clanton, Alabama. Boatright manufactures, sells and distributes creosote and borate-treated crossties as well as switch ties, tie plugs and bridge timbers to railroad operators.
The transaction, if finalized, is expected to close during the latter part of the second quarter of 2014 and is subject to customary closing conditions, including signature of a definitive asset purchase agreement and satisfactory due diligence. Stella-Jones plans to finance the transaction through existing credit facilities.
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 and timbers, and the continent's electrical utilities and telecommunication companies with utility poles. Stella-Jones also provides residential lumber to retailers and wholesalers 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.
Except for historical information provided herein, this press release contains information and statements of a forward-looking nature concerning the proposed acquisition described herein. These statements are based on suppositions, risks and uncertainties as well as on management's best possible evaluation of future events. Such risks and uncertainties include, without excluding other considerations, satisfactory completion of due diligence, satisfaction of other closing conditions and failure to complete the proposed acquisition for any other reason. As a result, readers are advised that actual results may differ from expected results and should not place undue reliance on forward-looking information.