One of North America’s largest suppliers of utility poles, Stella-Jones Inc., has agreed to acquire Brooks Manufacturing Co. for $140 million in a deal that will strengthen its position in supplying poles to the electrical distribution and transmission markets. The transaction, which now remains subject to regulatory approval, is expected to close by year-end and will be financed through Stella-Jones’ existing credit facilities.
Wood Central understands that the acquisition is part of a push to beef up Stella-Jones’ capacity, which supplies more than one million poles every year to replace, upgrade, and develop electrical and telecommunications lines across Canada and the United States. For its measure, Brooks Manufacturing, founded in 1915 and based in Bellingham, Washington, specialises in pressure-treated wood crossarms and transmission framing components for utilities, bringing a century-long track record and established customer base to Stella-Jones’ portfolio.
“The acquisition is a natural fit,” according to Eric Vachon, the president and CEO of Stella-Jones. “The addition of Brooks bolsters Stella-Jones’ suite of solutions, enhancing our ability to meet the growing demand of utilities and unlock new growth opportunities,” Vachon said, which in addition to poles and crossarms supplies utility companies with steel lattice towers and treated wood railway ties and timbers, and manufactures industrial products for railway bridges, marine pilings and foundation applications and treated lumber.
Industry analysts view the Brooks deal as a natural extension of Stella-Jones’ infrastructure-focused growth strategy. “This acquisition diversifies Stella-Jones’ product offering and leverages Brooks’ established brand and customer relationships,” noted James McGarragle of RBC Capital Markets. Brooks Manufacturing’s facility in Washington will join Stella-Jones’ network of more than 50 production sites across Canada and the United States. Upon closing, Stella-Jones expects to realise operational synergies and deliver incremental value to its utility customers throughout the continent.
In recent years, North America has faced a mounting power-pole crisis, with investigators attributing several devastating wildfires to aging electrical infrastructure. Last year, Wood Central reported that experts warn that climate change will exacerbate these challenges and threaten grid reliability. Nearly 1,000 survivors of a 2020 Oregon wildfire have filed a $30 billion lawsuit against PacifiCorp, alleging fallen power lines ignited the Labor Day fire. Weeks earlier, a coalition led by Collins Pine Co. filed a $225 million suit against Pacific Gas & Electric over a 2021 blaze allegedly sparked by a downed line.
- To learn more about the challenges facing the North American utility network – including the United States network, click here for Wood Central’s special feature from April 2024.
