MONTRÉAL—Stella-Jones Inc. has signed a non-binding letter of intent to acquire the wood treating facilities of Boatright Railroad Products, Inc. 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 for railroad applications.
If finalized, the deal will close during the latter part of the second quarter of 2014 and is subject to customary closing conditions, including a definitive asset purchase agreement and satisfactory due diligence.
Stella-Jones plans to finance the transaction through existing credit facilities.
Stella-Jones Inc. produces and markets pressure-treated wood products such as railway ties, utility poles and residential lumber.