Stella-Jones Inc. has entered into a definitive agreement to purchase substantially all of the assets employed in the wood utility pole manufacturing business of Texas Electric Cooperatives, Inc. (“TEC”) for a total purchase price of $28 million plus inventories of approximately $4 million.
TEC produces southern yellow pine utility poles using Creosote and CCA preservatives at its wood treating facility in Jasper, Texas. Wood pole sales for the year ended December 31, 2021, totaled $28 million.
“This acquisition, which adds a 43rd manufacturing facility to our network, will enhance Stella-Jones’ offerings and expand our capacity to supply the growing needs of North America’s utility pole industry, while optimizing the overall efficiency of our continental network”, said Eric Vachon, President and CEO of Stella-Jones. “We look forward to welcoming the Jasper facility employees to our team of over 2,400 employees across North America.”
The transaction is scheduled to close prior to the end of 2022 and is subject to customary closing conditions.
Stella-Jones intends to finance the transaction with its existing credit facilities.
Stella-Jones Inc. is North America’s leading producer of pressure-treated wood products.
