Business
Stella-Jones Grows Into Electrical Transmission Steel Structures With the Acquisition of Locweld
MONTREAL, May 07, 2025 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (TSX: SJ) (“Stella-Jones ...
About this update from Stella-jones Inc.
[{"type":"text","content":"Stella-Jones Grows Into Electrical Transmission Steel Structures With the Acquisition of LocweldCompany delivering on its strategy to expand infrastructure offering\n\n\n\n MONTREAL, May 07, 2025 (GLOBE NEWSWIRE) -- Stella-Jones Inc. (TSX: SJ) (“Stella-Jones” or “the Company”) announced today that it has entered into a definitive agreement to acquire Locweld Inc. (“Locweld”), a leading designer and manufacturer of lattice transmission towers and steel poles. The closing of the acquisition is expected to occur today.\n \n\n Based in Candiac, Quebec, Locweld has established a strong reputation for its commitment to quality and service, with over 75 years of operations. Led by a seasoned management team, Locweld employs approximately 220 people and services customers in both Canada and the United States from its 220,000 square foot facility.\n \n\n “This acquisition is a step-change that enables Stella-Jones to establish a presence in the approximately five-billion-dollar steel transmission structure market, complementing our current utility poles business and offering new growth opportunities,” said Eric Vachon, President and Chief Executive Officer of Stella-Jones. “We are executing on our strategy to broaden Stella-Jones’ infrastructure offering with an acquisition that capitalizes on our expansive sales and distribution network. With this strategic move, we are well positioned to better serve our customers and gain invaluable experience as we work to continually develop our reach,” he concluded.\n \n\n “For almost 40 years, the Cyr family has been at the helm of Locweld, and we are excited to have identified a strategic buyer in Stella-Jones,” said Michael Cyr, Chief Executive Officer of Locweld. “This transaction will be mutually beneficial; Locweld will benefit from the breadth and strength of a larger organization that views the transmission structure industry as a keystone of its future growth, and our team will bring industry expertise and know-how to continue to deliver exceptional value to customers,” he added.\n \n\n The consideration for the acquisition consists of a purchase price of $58 million on a cash-free debt-free basis and subject to customary working capital adjustments. An additional performance-based...