Pittsburgh-based Koppers Inc. agreed to acquire the Wood Preservation and Railroad Services business of Osmose Holdings for $460 million.
Revenues for the acquired businesses in 2013 were about $390 million.
Koppers president and CEO Walt Turner described the acquisition as a complimentary move. “Importantly, the business culture of Osmose is closely aligned with that of Koppers, which should provide for a smooth integration allowing us to fully capture synergies and realize the earnings and margin accretion that we have identified during our due diligence process.”
Osmose’s Wood Preservation business is a global leader in developing, manufacturing and marketing wood preservation chemicals and wood treatment technologies. Last year’s sales were about $350 million, according to the announcement. Osmose’s railroad services included bridge inspection, engineering, maintenance and repair generated about $40 million in 2013 revenues.
In a letter to customers, Osmose executives described the move as a positive for the company and its customers.
"Osmose Wood Preserving will continue to operate as it has with very little visible change to our customers and markets," read a letter signed by Osmose senior VPs Steve Reeder and Gary Converse. "We look forward to serving our customers as we always have, and we consider this acquisition to be a very postivite development for Osmose and our customers' future success."
The transaction is expected to close in the third quarter of 2014.