Koppers Agrees To Acquire Brown Wood For $100 Mln

(RTTNews) - Koppers Holdings Inc. (KOP) announced on Wednesday that its fully owned subsidiary, Koppers Utility and Industrial Products Inc., has agreed to purchase most of the assets of Brown Wood Preserving Company, Inc., and some of its affiliates for about $100 million in cash.

The company intends to fund the acquisition using a combination of cash and borrowing.

CEO Leroy Ball stated that while the acquisition of Brown Wood may not significantly impact 2024 results due to timing and integration costs, it is anticipated to help Koppers achieve adjusted earnings of $315 million to $325 million in 2025.

Following the completion of the deal, Brown Wood will be integrated into Koppers Utility and Industrial Products.

The transaction is anticipated to be finalized in the second quarter of 2024, pending the standard closing conditions.