Stella-Jones acquires a U.S. company : the Fund invests $30.5 million
MONTREAL, April 6 /CNW Telbec/ - Consolidating its role as a leading producer and marketer of industrial pressure treated wood products, more specifically, railway ties and wood poles for electrical utilities, Stella-Jones Inc. has acquired Tangent Rail Corporation. This U.S. company holds a solid share of the U.S. railway tie market, thus positioning Stella-Jones to become a North-American leader in this field. A portion of the funds used to purchase Tangent Rail Corporation came from the Solidarity Fund QFL (the "Fund"), which invested $30.5 million, made up of a $25.5 million debenture and $5 million in capital stock.
"We are building a solid business relationship with this Québec jewel because we have confidence in its strong management team and its structured expansion plan. In a mature market such as the one for pressure treated wood, growth will primarily come through geographic expansion and increased market share. This latest acquisition along with the previous ones both in Canada and the U.S. allows Stella-Jones not only to consolidate jobs in Québec but to become a leader in the North-American wood preservation industry," said the Fund's senior vice-president of investments, Gaétan Morin.
"This new acquisition is part of our strategic plan to play a consolidator role in our industry. It also allows us to further establish ourselves as a leader in the railway tie market. Once again, we've been able to count on the Fund and its patient capital," added Stella-Jones' president and CEO, Brian McManus.
The Fund has been a key partner in Stella-Jones' growth since 2003, investing some $80 million to date. Known for its efficiency and high productivity, Stella-Jones is an industry-leading Québec company the Fund is proud to support.
About the Solidarity Fund QFL
The Solidarity Fund QFL helps drive our economy. With net assets of $7.0 billion as at November 30, 2009, the Fund is a development capital company that through its RRSP channels the savings of Quebecers into investments in all sectors of the economy to help create and maintain jobs and to further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 2,000 companies. It currently has nearly 571,000 shareholders and has helped, on its own or with other financial partners, to create, maintain and protect nearly 143,000 jobs. For more information, visit www.fondsftq.com.
SOURCE Fonds de solidarité FTQ
For further information: For further information: Note: The telephone number provided below is for the exclusive use of journalists and other media representatives. Josée Lagacé, Senior Advisor, Press Relations and Communications, Fonds de solidarité FTQ, (514) 850-4835