Stella-Jones completes acquisition of Ram Forest Group
October 2, 2015 - Stella-Jones Inc. announced that it has completed its previously announced acquisition of the shares of Ram Forest Group Inc. and Ramfor Lumber Inc.
By Andrew Macklin
Through its wholly-owned subsidiaries, Ram Forest Products Inc. and Trent Timber Treating Ltd., Ram Forest Group manufactures and sells pressure treated wood products and accessories to the retail building materials industry. Ram Forest Products operates a wood treating facility in Gormley, Ontario and Trent Timber Treating operates a wood treating facility in Peterborough, Ontario. Ramfor Lumber is a lumber purchasing entity serving Ram Forest Products and Trent Timber Treating. Combined sales and Adjusted EBITDA of the acquired facilities for the fiscal year ended September 30, 2014 reached approximately $90.4 million and $11.1 million, respectively.
The purchase price was $60.0 million, including $16.7 million of estimated working capital, subject to post-closing adjustments. Stella-Jones has financed the acquisition through its existing revolving credit facility.
“The acquisition of Ram Forest Group further enhances Stella-Jones’ offering of treated wood products to the retail market. We expect this transaction to yield synergies and to be immediately accretive to earnings, as we aim to optimize operating efficiency across our continental network,” said Brian McManus, president and chief executive officer of Stella-Jones.