MONTRÉAL, QUÉBEC- Pressure-treated wood products firm Stella-Jones Inc. (TSX:SJ)says it signed signed a letter of intent to acquire Thompson Industries, Inc., Russellville, AS, for $41 million. Thompson makes treated wood products for the railroad industry.

The transaction is expected to close in December 2011. Stella-Jones plans to finance the acquisition through existing credit facilities.

Founded in 1981, Thompson produces treated wood products, mainly railway ties and timbers, at its facility in Russellville, Arkansas. Thompson's sales for its fiscal year ended September 30, were approximately US$49.0 million. Stella Jones reported second quarter revenues June 30 of $180.3 million, a 7.8% rise over first quarter. Stella-Jones also supplies the Canadian residential marketplace with preserved wood to build decks, fences, and other outdoor home renovation projects. In 2010 this total $53 percent of its sales, of $29.8 million.