English
French
German
Italian
Russian
Spanish
Koppers to acquire Brown Wood Preserving for $100 million
Koppers to acquire Brown Wood Preserving for $100 million By Investing.com
Breaking News
‘;
EditorEmilio GhiginiStock Markets
Published Feb 28, 2024 08:04AM ET
© Reuters.
PITTSBURGH – Koppers Holdings Inc . (NYSE: NYSE:KOP), a global provider of treated wood products and related materials, has entered into an agreement to purchase all assets of Brown Wood Preserving Company, Inc. and its affiliates for about $100 million in cash.
The acquisition by Koppers Utility and Industrial Products Inc., a Koppers Holdings subsidiary, is anticipated to close in the second quarter of 2024, pending customary closing conditions.
Brown Wood, established in 1929 with headquarters in Louisville, Kentucky, specializes in manufacturing and selling pressure-treated wood utility poles, employing roughly 100 people. The company predominantly serves the Midwest and Southeast regions of the U.S. from its facilities in Kennedy, Alabama, and Mathiston, Mississippi.
James Sullivan, President and COO of Koppers, expressed enthusiasm about integrating Brown Wood into the Koppers team, highlighting the enhanced capabilities and expanded geographic reach the acquisition will bring. CEO Leroy Ball (NYSE:BALL) views the acquisition as a strategic move in line with the company’s intentions to grow their utility pole treatment business.
The transaction is structured as a cash purchase, with Koppers planning to finance the acquisition through available cash and borrowing capacity. Upon completion, Brown Wood will operate within Koppers Utility and Industrial Products division.
While the acquisition is not expected to significantly impact Koppers’ financial results for 2024 due to the timing and costs associated with integration, the company anticipates that it will contribute to achieving a projected adjusted EBITDA of between $315 million and $325 million in 2025.
Koppers, headquartered in Pittsburgh, Pennsylvania, operates globally with a diverse range of end markets, including railroad, specialty chemical, utility, and construction industries. Its stock is publicly traded on the New York Stock Exchange.
This news is based on a press release statement and the financial details mentioned are non-GAAP measures, which are used by Koppers management for internal performance assessment and may differ from GAAP measures. The company does not provide reconciliations of these non-GAAP measures to GAAP due to certain items that are difficult to forecast and may be significant.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Koppers to acquire Brown Wood Preserving for $100 million
Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information
© 2007-2024 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
