11:47 AM EDT, 09/30/2025 (MT Newswires) -- Stella-Jones ( STLJF ) Tuesday said it entered into a definitive agreement to acquire the assets of Brooks Manufacturing, a manufacturer of treated wood distribution crossarms and transmission framing components located in the United States.

The purchase price is approximately US$140 million, subject to customary working capital adjustments and Stella-Jones ( STLJF ) will finance the acquisition through its existing revolving credit facilities.

The completion of the acquisition is contingent upon closing conditions, including U.S. antitrust regulatory approval, and is expected to occur by the end of the year.

"The addition of Brooks bolsters Stella-Jones' ( STLJF ) suite of solutions, enhancing its ability to meet the growing demand of utilities and unlock new growth opportunities," said Stella-Jones' ( STLJF ) president and chief executive officer Eric Vachon. "The acquisition reflects our strategic focus and aligns with our vision to make Stella-Jones ( STLJF ) a partner of choice to our infrastructure customers."

National Bank of Canada Tuesday maintained an outperform rating and C$92 price target on the shares of Stella-Jones ( STLJF ), and said that the acquisition provides "an estimated +2% - +3% lift to 2026E EBITDA."

"At ~1.7x EV/Sales based on 2024 revenue of US$84 mln (SJ at 1.6x for 2024), this marks another strategic step in SJ's push to expand its utility infrastructure product offering and deepen its footprint in the U.S. market (now ~ 75% of total revenue vs. prior 72.5%)," said the bank.

The bank added that the acquisition is a "natural strategic fit" for Stella-Jones ( STLJF ), as Brooks' crossarms and framing components complement SJ's existing utility pole offerings, while both companies serve major North American utilities, "creating opportunities" for cross-selling and bundling.

"If we assume that treated-wood products carry low-double digit EBITDA margins, it would imply the acquisition carries an 11x - 14x EV/EBITDA multiple pre-synergies on 2024 actuals (SJ at 9.7x in the same time frame)," said the bank.

National Bank of Canada also said it believes that the transmission opportunity "is real with hopefully incremental manufacturing capacity additions down the line south of the border."

The company's shares were last seen up 1.4% to $77.35 on the Toronto Stock Exchange.

Price: 77.35, Change: +1.07, Percent Change: +1.40