Mr. David Galison reports

STELLA-JONES EXPANDS ITS UTILITY PRODUCT OFFERING WITH AN AGREEMENT TO ACQUIRE BROOKS MANUFACTURING CO.

Stella-Jones Inc. has entered into a definitive agreement to acquire the assets of Brooks Manufacturing Co., a manufacturer of treated wood distribution cross-arms and transmission framing components located in the United States. This transaction marks another significant step in the company's strategy to expand beyond its traditional product categories and leverage its extensive sales and distribution network to better support the needs of the utility sector.

Founded in 1915, Brooks is a long-standing supplier to utilities with a proven record of quality and customer service. It operates a facility located in Bellingham, Wash., supplying a wide array of treated cross-arms and framing components that play a vital role in ensuring the strength and reliability of overhead electrical systems.

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

The definitive agreement provides for a purchase price of approximately $140.0-million (U.S.), subject to customary working capital adjustments. The completion of the acquisition is contingent upon closing conditions, including United States antitrust regulatory approval, and is expected to occur by the end of the year. Sales for Brooks's year ended Dec. 31, 2024, reached approximately $84-million (U.S.). The company will finance the acquisition through its existing revolving credit facilities.

About Stella-Jones Inc.

Stella-Jones is a leading North American manufacturer of products focused on supporting infrastructure that are essential to the delivery of electrical distribution and transmission, and the operation and maintenance of railway transportation systems. It supplies the continent's major electrical utilities companies with treated wood and steel utility poles and steel lattice towers, as well as North America's Class 1, short line and commercial railroad operators with treated wood railway ties and timbers. It also supports infrastructure with industrial products, namely timbers for railway bridges, crossings and construction, marine and foundation pilings, and coal tar-based products. Additionally, the company manufactures and distributes premium treated residential lumber and accessories to Canadian and American retailers for outdoor applications, with a significant portion of the business devoted to servicing Canadian customers through its national manufacturing and distribution network.

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