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 Koppers Completes Acquisition of Brown Wood Preserving Company for $100 Million
[Apr 3, 2024]

 wood poles
Koppers Holdings Inc. (NYSE: KOP), an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds, today announced that Koppers Utility and Industrial Products Inc. (UIP), a wholly owned subsidiary of Koppers Holdings, has completed its acquisition of substantially all of the assets of Brown Wood Preserving Company, Inc. and certain of its affiliates (Brown Wood) for approximately $100 million in cash. Brown Wood, which produces pressure-treated wood utility poles, will become part of Koppers UIP.

James Sullivan, President and Chief Operating Officer of Koppers, said, "The addition of the Brown Wood assets to our portfolio provides sales and production support in our existing markets. More importantly, this addition offers an attractive entry point to new geographic markets. I'm excited to get started on the integration and begin capitalizing on the combined resources of our two businesses."

Chief Executive Officer Leroy Ball added, "I am happy to be closing on this acquisition and welcoming the Brown Wood team into the Koppers culture. We continue to see the utility pole market as an attractive growth engine for Koppers, given UIP's smaller exposure relative to our other businesses. As well, we anticipate that positive industry dynamics will support a healthy end market in the utility pole business for the foreseeable future."

As previously announced, the transaction is expected to contribute $15 million to $25 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025. Details of the impact on 2024 will be provided during the company's first-quarter earnings call in early May.

About Koppers

Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds. Our products and services are used in a variety of niche applications in a diverse range of end markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. We serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, and Europe. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP."

For more information, visit: https://www.koppers.com/.

Source:  PRNewswire