Scottish timber company James Jones & Sons Ltd has been centrally involved in the US$16m acquisition of American railway sleeper producer Webster Wood Preserving Company.
The acquisition was completed by Canadian timber treatment company Stella-Jones Inc, in which James Jones and Italian utility poles manufacturer Stella SpA jointly have a majority shareholding.
The deal will mean James Jones playing a major role in keeping America’s extensive rail network running smoothly.
Wisconsin-based Webster supplies one million railway sleepers each year to the US railroad industry.
Stella-Jones, based in Québec, will now have double the capacity to treat and manufacture railway sleepers, giving it a 10% share in the North American market.
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“This is a significant move by the company and our first acquisition in the US ” |
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Tom Bruce Jones, chairman of James Jones |
Tom Bruce Jones, chairman of James Jones and Stella-Jones, said: “This is a significant move by the company and our first acquisition in the US.”
He said the move will lead to further development of Stella-Jones’ business in the US.
David Crichton, chief executive of the Confederation of Forest Industries (UK) Ltd, said: “This acquisition is excellent news that demonstrates how a Scottish-owned company operating in a traditional sector has adopted modern technology and management to become a global player in a highly competitive industry.”
Stella-Jones produces a range of treated timber products including sleepers, utility poles, industrial timbers and marine piles. It is the largest timber treater in Canada.
