Stella-Jones Expands its Utility Product Offering with an Agreement to Acquire Brooks Manufacturing Co.

Executive Summary

• Stella‑Jones Inc. entered into a definitive agreement to acquire the assets of Brooks Manufacturing Co., a U.S. supplier of treated wood crossarms and transmission framing components, for approximately US $140 million.
• The acquisition expands Stella‑Jones’ product portfolio and geographic reach within the utility sector, aligning with its strategic goal to broaden beyond traditional categories.
• Financing will be sourced from existing revolving credit facilities; closing is expected by year‑end pending customary conditions, including U.S. antitrust approval.

Key Details

• Target: Brooks Manufacturing Co., located in Bellingham, Washington, USA.
• Purchase Price: Approximately US $140 million, subject to standard working‑capital adjustments.
• Revenue of Target (FY 2024): Approx. US $84 million.
• Financing: Acquisition will be funded through Stella‑Jones’ existing revolving credit facilities; no new equity or debt issuance disclosed.
• Closing Conditions: Subject to customary closing conditions, including approval from U.S. antitrust regulators. Expected completion by end of 2025.
• Strategic Rationale: Adds treated wood crossarms and framing components to Stella‑Jones’ offerings, leveraging its sales/distribution network to serve utility customers more comprehensively and unlock growth opportunities.
• Management Quote: “The addition of Brooks bolsters Stella‑Jones’ suite of solutions, enhancing its ability to meet the growing demand of utilities…,” said Eric Vachon, President & CEO.

Notable Quotes

“This acquisition is a natural fit… The acquisition reflects our strategic focus and aligns with our vision to make Stella‑Jones a partner of choice to our infrastructure customers.” – Eric Vachon, President & CEO, Stella‑Jones

Materiality Assessment: Material – Positive (the transaction is a significant strategic expansion likely to have a positive impact on the company’s growth trajectory).