Wood Business

Industry News News Remanufacturing
Stella-Jones acquiring Alabama’s Cahaba Pressure and Cahaba Timber


November 5, 2021
By CFI staff

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Stella-Jones is expanding its North American remanufacturing portfolio with the announced acquisition of Alabama’s Cahaba Pressure Treated Forest Products and Cahaba Timber.

The Quebec-based producer of industrial pressure-treated wood products, through its U.S. subsidiary, will shell out approximately US$66 million for Cahaba Pressure and US$36.5 million for Cahaba Timber. The two companies represent the largest wood pole production site in the U.S.

Cahaba Pressure’s wood treating facility in Brierfield, Ala., manufactures, distributes and sells treated and untreated wood poles, crossties and posts, and provides custom treating services. The company did approximately US$56 million in consolidated sales last year.

“This acquisition will enhance Stella-Jones’ offerings and expand our capability to supply the needs of North America’s utility pole industry,” said Eric Vachon, president and CEO of Stella-Jones. “The addition of Cahaba Pressure will add to our capacity, further support the preservative offering to our customers and optimize the overall efficiency of our continental network.”

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Cahaba Timber, co-located in Brierfield, produces treated poles and pilings, primarily using CCA, CCA ET Clear and CCA ET Brown and engages in raw material procurement. Cahaba Timber’s 2020 sales were approximately US$41 million.

“The acquisition of Cahaba Timber will allow Stella-Jones to enhance its offerings in the North American wood treating industry and is consistent with our objective of continuing to increase shareholder value through accretive acquisitions,” Vachon said.

The purchases are expected to finalize before the end of the year.