Stella Jones completes US$60M Boatright acquisition
The deal includes facilities and about includes about $9 million of current inventory
MONTRÉAL—Stella-Jones Inc.has completed the acquisition of Boatright Railroad Products, Inc.’s wood treating facilities of in Montevallo and Clanton, Ala.
The US$60-million deal includes facilities that manufacture, sell and distribute creosote and borate-treated crossties, switch ties, tie plugs and bridge timbers for railroads and railroad contractors. It also includes about $9 million of inventory.
Boatright posted 2013 sales of $73.5 million.
“The acquisition of these facilities further enhances our range of treated wood products and services to the North American railroad industry” said Brian McManus, President and Chief Executive Officer of Stella-Jones in a press release. “We expect this transaction to yield synergies and to be immediately accretive to earnings, as we continue to optimize the overall efficiency of our continental network.”
Stella Jones, a treated wood products manufacturer based in Saint-Laurent, Qué., reported first quarter sales of $257.5 million.