Koppers Holdings Inc.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, signed an agreement to acquire 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 manufactures and sells pressure-treated wood utility poles.  The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions.

Commenting on the transaction, James Sullivan, President and Chief Operating Officer of Koppers said, "I am really pleased to add the Brown Wood group to the Koppers team.  Together, we will be able to bring even greater capabilities to our customer base while growing our geographic reach.  I am excited to see the results of this combination in the Koppers portfolio and the positive impact it will have on the profitability of our now larger global utility business."

Chief Executive Officer Leroy Ball added, "The acquisition of Brown Wood is the logical next step to our announced intentions to focus on growing our utility pole treatment business through both organic and inorganic means.  While this likely will not add materially to 2024 results due to timing and integration costs, all things equal, it should enable Koppers to achieve 2025 adjusted earnings before interest, taxes, depreciation and amortization of between $315 million and $325 million."

Founded in 1929, Brown Wood is headquartered in Louisville, Kentucky.  The company has approximately 100 employees, serving customers primarily in the Midwest and Southeast regions of the United States, with locations in Kennedy, Alabama, and Mathiston, Mississippi.

Terms of Transaction

Under the terms of the transaction, Koppers is acquiring Brown Wood for a base purchase price of $100 million in cash, subject to certain closing adjustments, and plans to finance the acquisition through cash and borrowing capacity.  Brown Wood will be operated as part of Koppers Utility and Industrial Products upon closing.

 

Source:prnewswire.com

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