Stella-Jones Strengthens Utility Offering with New Acquisition
Expanding Horizons in Utility Products
Stella-Jones Inc. has taken a significant step forward in enhancing its utility product offerings through a strategic acquisition. The company has recently reached an agreement to acquire Brooks Manufacturing Co., a distinguished manufacturer of treated wood distribution crossarms and transmission framing components. This move aligns perfectly with Stella-Jones' goal of evolving beyond its traditional offerings, allowing it to leverage its sales and distribution network more effectively to meet the utility sector's growing needs.
The Legacy of Brooks Manufacturing Co.
Brooks Manufacturing Co. has been a trusted supplier to utilities for over a century, having established its operations in 1915. The company is renowned for its commitment to quality and exceptional customer service, operating a facility that plays a crucial role in the robustness of overhead electrical systems. Their product line encompasses a variety of treated wood components that are essential for maintaining reliable electrical service.
Strengthening Partnerships
Eric Vachon, President and CEO of Stella-Jones, expressed confidence in this acquisition, highlighting that adding Brooks to their portfolio is a logical and synergistic move. This acquisition not only enhances Stella-Jones' solution offerings but also positions the company to better cater to the high demand within the utility sector, unveiling new opportunities for growth and collaboration.
Financial Overview of the Acquisition
The definitive agreement struck between Stella-Jones and Brooks comes with a purchase price near $140 million, which is subject to standard working capital adjustments. The acquisition's completion is dependent on several conditions, including approval from anti-trust regulatory bodies in the U.S., with an anticipated finalization date set for sometime within the year. Notably, Brooks reported approximately $84 million in sales for its fiscal year ending in December.
Funding the Deal
To facilitate the acquisition, Stella-Jones will rely on its existing revolving credit facilities, ensuring that the company can strategically finance this growth initiative without compromising financial stability. This financial prudence demonstrates Stella-Jones' commitment to maintaining a robust operational foundation while pursuing new growth avenues.
About Stella-Jones Inc.
Stella-Jones Inc. is recognized as a leading North American manufacturer of essential infrastructure products that support electrical distribution, transmission, and railway transportation systems. The company caters to major electrical utility providers with a suite of offerings, including treated wood and steel utility poles and steel lattice towers. Additionally, it serves North America’s extensive network of Class 1, short line, and commercial railroads with treated wood ties and timber products.
Innovative Product Solutions
In addition to its utility-focused products, Stella-Jones also manufactures and distributes an array of industrial solutions, such as timbers for railway bridges and various types of pilings. The company is dedicated to enhancing infrastructure services across multiple sectors, including outdoor applications for residential lumber, thereby securing its place as a versatile player in the infrastructure landscape.
Contact Information
For inquiries or further information, interested parties can reach out to the Stella-Jones head office:
Stella-Jones – Head Office
3100 de la Côte-Vertu Blvd., # 300,
Saint-Laurent, Québec H4R 2J8
Tel: (514) 934-8666
Fax: (514) 934-5327
Investor Relations Contact:
David Galison, Vice-President,
Tel: (647) 618-2709
Email: dgalison@stella-jones.com
Media Contact:
Stephanie Corrente, Director of Corporate Communications,
Tel: (514) 934-8666
Email: communications@stella-jones.com
Frequently Asked Questions
What is the significance of Stella-Jones acquiring Brooks Manufacturing Co.?
The acquisition enhances Stella-Jones' utility product offerings, helping the company meet growing demands in the sector.
How much did Stella-Jones pay for Brooks Manufacturing Co.?
Stella-Jones agreed on a purchase price of approximately $140 million, subject to customary adjustments.
Where is Brooks Manufacturing Co. located?
Brooks Manufacturing performs its operations in Bellingham, Washington, producing essential electrical components.
What financial support will Stella-Jones utilize for this acquisition?
The company will finance the acquisition through existing revolving credit facilities, ensuring financial stability.
How has Brooks Manufacturing Co. performed financially?
For the fiscal year ending December 31, Brooks reported sales of approximately $84 million, showcasing its strong market presence.
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