The North American manufacturer of pressure treated wood products, Stella-Jones has signed a definitive agreement to purchase the shares of 440 Investments, LLC, the parent company of Kisatchie Treating, LLC, Kisatchie Pole & Piling, LLC, Kisatchie Trucking, LLC and Kisatchie Midnight Express, LLC
Kisatchie produces treated poles, pilings and timbers, with two wood treating facilities in Noble and Pineville, Louisiana. Kisatchie’s consolidated sales for the year ended December 31, 2015 reached approximately US$51.8 million.
Stella-Jones has also signed a definitive agreement to purchase the shares of Lufkin Creosoting, a Texas company that specializes in the manufacture of posts and treated wood beams.
Lufkin Creosoting produces treated poles and timbers at its wood treating facility in Lufkin, Texas. Its consolidated sales for the year ended December 31, 2015 reached approximately US$34.2 million.
The definitive share purchase agreement provides for a purchase price of US$37.5 million which includes US$5.0 million of working capital and is subject to adjustments. The transaction is expected to close during the second quarter of 2016 and is subject to customary closing conditions.
