06/19/2015 09:48 EDT | Updated 06/19/2016 05:59 EDT

Quebec wood products company Stella-Jones to pay $58 million for Ram Forest Group

MONTREAL - Stella-Jones (TSX:SJ) revealed Friday that it will pay $58 million to buy Ontario-based Ram Forest Group Inc. and Ramfor Lumber Inc., which manufacture and sell pressure-treated wood products.

A preliminary agreement was announced in April without an estimated price. The deal is expected to close in October.

Ram Forest operates treating facilities in Gormley and Peterborough that generated about $90 million in sales last year.

Stella-Jones had $1.25 billion in sales last year from the sale of pressure-treated ties and timbers to North American railways, utility poles to electrical utilities and telecom companies and lumber for residential customers.