Koppers Holdings Inc. announced that Koppers Utility and Industrial Products Inc., 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. The transaction is expected to close in the Q2 2024, subject to customary closing conditions.
CEO 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. Brown Wood manufactures and sells pressure-treated wood utility poles. 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.
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.
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals, and carbon compounds.
