US treated timber producer Stella-Jones Inc, owned by UK sawmiller James Jones & Sons and Italian firm Stella SpA, is to acquire wood crosstie supplier Tangent Rail Corporation.
The acquisition will expand Stella-Jones’ capabilities in the US railway tie industry and provide the company with creosote manufacturing operations.
Tangent’ sales for 2009 are expected to reach US$175m. The company has facilities in Alabama, Indiana, Louisiana and Pennsylvania, with creosote distilleries in Indiana, Memphis and Tennessee.
“Tangent enjoys a solid market reputation and possesses high-quality assets, which facilitate its integration into our network if the transaction is completed,” said Brian McManus, president and CEO of Stella-Jones.
