Koppers to buy Osmose's wood preservation and railroad servicesThursday 17 Apr 2014 Koppers Holdings Inc, a producer of carbon compounds and treated wood products, has announced that it has agreed to acquire the wood preservation and railroad services businesses of Osmose Holdings, Inc. for US$460 million. Under the deal, Koppers' wholly-owned subsidiary, Koppers Inc., will acquire the business that had combined revenues of about US$390 million in 2013. The transaction is expected to close in the third quarter of 2014.Walt Turner, President and CEO of Koppers, said, "Acquiring these businesses from Osmose represents another important step in our long-term growth strategy by expanding both our chemicals offering and extending our existing railroad and utilities products and services platform. This unique growth opportunity will complement our existing businesses through leading market positions in strategic end-markets." Buffalo, New York-based Osmose is comprised of utilities services, wood preservation technologies, and railroad services. The company is a privately-owned corporation and a portfolio company of private equity firm Oaktree Capital Management L.P. Osmose's wood preservation business develops, manufactures and markets wood preservation chemicals and wood treatment technologies. The business, with operations and sales in North America, Latin America, Europe, and Australasia, accounted for about US$350 million of the acquired business' combined revenue in 2013. The business's products serve a diverse range of end-markets including infrastructure, residential and commercial construction, and agriculture. Locally, Osmose says that they are pleased to become affiliated with Koppers, a large strategic partner that has an understanding and an appreciation of the unique complexities characterizing the wood preservation industry. Koppers recognizes the value in maintaining and supporting Osmose as an efficient and progressive operating unit and Osmose Wood Preserving will continue to operate as it has with very little visible change to its customers and markets. |
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