MONTREAL—Stella-Jones is expanding its wood treating capabilities for the residential lumber market, having signed a letter of intent to purchase Ontario supplier Ram Forest Group and Ramfor Lumber for an undisclosed price.
Ram Forest subsidiaries operate treating facilities in Gormley and Peterborough that generated about $90 million in sales last year.
A wood milling plant operated by the company in Uxbridge, Ont. is not part of the transaction.
The deal announced April 30 is expected to close in October 2015.
Shares of Montreal-based Stella-Jones hit an all-time high of $44.27 after the company announced strong first-quarter results.
Stella-Jones revenues and profit surged more than 30 per cent in the quarter. It earned $30.1 million or 43 cents per diluted share, up from $22.5 million or 33 cents per share in the prior year.
Revenues increased to $340.7 million from $257.5 million on acquisitions, favourable currency translation and organic growth due to higher selling prices.
Stella-Jones supplies pressure-treated ties and timbers to North American railways, utility poles to electrical utilities and telecom companies and lumber for residential customers.