Stella-Jones eyes debt financing for $80 million of acquisitions

By Angela McDaniels

Tacoma, Wash., May 11 – Stella-Jones Inc. plans to use debt financing to fund a pair of upcoming acquisitions, according to company news releases.

The company’s subsidiary, McFarland Cascade Holdings, Inc., agreed to purchase the equity interests of 440 Investments, LLC for $42.5 million, which includes $10 million of working capital, and the shares of Lufkin Creosoting Co., Inc. for $37.5 million, which includes $5 million of working capital.

The company will use vendor notes in addition to debt financing to fund the acquisitions, which are expected to close during the second quarter.

Stella-Jones is based in Montreal and makes pressure-treated wood products.

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