Koppers announced that it has completed the acquisition of the wood preservation and railroad services businesses of Osmose Holdings. Source: Timberbiz
“Acquiring the two Osmose businesses is an important step in our long-term growth strategy for Koppers,” said Walt Turner, president and CEO of Koppers.
Koppers is a global supplier of carbon compounds and commercial wood treating products and services. It has its headquarters in Pennsylvania and has annuals sales of around US$1.5 billion with more than 1600 employees in the US, Canada, Denmark, The Netherlands, Australia and China.
“The businesses fit well within our core competencies, expand both our chemicals offering and our existing railroad and utilities products and services platform, and provide additional growth opportunities as we gain leading market positions in strategic end-markets around the world,” Mr Turner said.
“The synergies from the acquisition are expected to be at least US$12 million, and we anticipate that the annual run rate will be realizable by the end of 2015.
“I am pleased with the opportunities that we have identified throughout the integration process, and I look forward to achieving the benefits that we will provide to our shareholders from the acquisition.”
The wood preservation business will be called Koppers Performance Chemicals and has operations and sales in North America, South America, Europe, and Australasia.
This business accounted for approximately US$350 million of the revenue in 2013 and serves a diverse range of end-markets including infrastructure, residential and commercial construction, and agriculture.
The railroad services business, now known as Koppers Railroad Structures, is a provider of railroad infrastructure services, including bridge inspection, engineering, maintenance and repair, and construction services for the Class I and shortline railroads in North America.
The business accounted for approximately US$40 million of revenue in 2013.
The aggregate cash purchase price for the acquired business was US$494.1 million.
