Stella-Jones to acquire Ram Forest Group
June 19, 2015 – Stella-Jones Inc. announced that it has signed a definitive agreement to purchase the shares of Ram Forest Group Inc. and Ramfor Lumber Inc. The signature of a non-binding letter of intent in respect of the proposed acquisition was reported by Stella-Jones on April 29, 2015.
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. Ramfor Lumber is a lumber purchasing entity serving Ram Forest Products and Trent Timber Treating.
The definitive share purchase agreement provides for a purchase price of $58.0 million, which includes $15.0 million of working capital and is subject to adjustments. The transaction is expected to close in October 2015 and is subject to customary closing conditions, including regulatory clearance. The proposed timetable for the transaction has been designed to minimize disruption of Ram Forest Group’s operations and ensure a seamless transition for its customers, suppliers and employees. Stella-Jones plans to finance the transaction through its existing revolving credit facility.