Koppers completes Osmose deal
Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc., completed the acquisition of the Wood Preservation and Railroad Services businesses of Osmose Holdings.
“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. “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.
S ynergies are expected to be at least $12 million, the company said.
The Wood Preservation business, now known as Koppers Performance Chemicals, develops, manufactures and markets wood preservation chemicals and wood treatment technologies.
The business has operations and sales in North America, South America, Europe, and Australasia, and accounted for approximately $350 million of the revenue for the acquired businesses in 2013.
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 $40 million of revenue in 2013.
Koppers is financing the purchase through new and existing bank debt, including a new term loan and an increase to the company’s existing revolving credit facility.