Strategic acquisition adds complementary products to broaden market reach and accelerate growth
Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or “the Company”) announced today that it has entered into a definitive agreement to acquire the assets of Brooks Manufacturing Co. (“Brooks”), a manufacturer of treated wood distribution crossarms and transmission framing components located in the United States. This transaction marks another significant step in the Company’s strategy to expand beyond its traditional product categories and leverage its extensive sales and distribution network to better support the needs of the utility sector.
Founded in 1915, Brooks is a long-standing supplier to utilities with a proven track record of quality and customer service. It operates a facility located in Bellingham, Washington, supplying a wide array of treated crossarms and framing components that play a vital role in ensuring the strength and reliability of overhead electrical systems.
“This acquisition is a natural fit,” said Eric Vachon, President and Chief Executive Officer of Stella-Jones. “The addition of Brooks bolsters Stella-Jones’ suite of solutions, enhancing its ability to meet the growing demand of utilities and unlock new growth opportunities. The acquisition reflects our strategic focus and aligns with our vision to make Stella-Jones a partner of choice to our infrastructure customers.”
The definitive agreement provides for a purchase price of approximately US$140.0 million, subject to customary working capital adjustments. The completion of the acquisition is contingent upon closing conditions, including U.S. antitrust regulatory approval, and is expected to occur by the end of the year. Sales for Brooks’ year ended December 31, 2024 reached approximately US$84 million. The Company will finance the acquisition through its existing revolving credit facilities.
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