Stella-Jones Adds 43rd Wood Pole Manufacturing Facility With Purchase of Texas Electric Cooperatives Inc.

Montreal-based Stella-Jones Inc. announced on Thursday (9-15-22) that it had 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 (USD), plus an additional $4 million in inventories.

TEC, located in Jasper, Texas, produces southern yellow pine utility poles, using Creosote and CCA preservatives in its wood treatment processes. TEC pole sales in the year ending December 31, 2021, totaled $28 million.

Commenting on the purchase, Eric Vachon, Stella-Jones President and CEO, said, “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. 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.

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Original Source:
Stella-Jones Signs Agreement to Purchase Wood Pole Manufacturing Business of Texas Electric Cooperatives, Inc.