Koppers Holdings Inc. has completed the acquisition of Brown Wood Preserving Company, Inc., a move that broadens its market reach and opens up new geographic areas for business. The deal, worth about $100 million in cash, involves Koppers Utility and Industrial Products Inc., a subsidiary of Koppers Holdings, taking over most of Brown Wood's assets, including its pressure-treated wood utility poles production.
James Sullivan, President and COO of Koppers, expressed positivity about the acquisition's impact on sales and production, stating, "Integrating Brown Wood's assets with our portfolio brings us valuable support in our current markets and introduces us to new ones."
Leroy Ball, Koppers' CEO, sees the addition of Brown Wood as a step towards strengthening the company's position in the utility pole market. "The acquisition aligns with our strategy to grow in areas where we see long-term potential, like the utility pole sector, supported by stable industry conditions," Ball said.
The company expects this acquisition to contribute $15 to $25 million in EBITDA by 2025, with further details on its impact in 2024 to be shared in the upcoming earnings call. Koppers, headquartered in Pittsburgh, Pennsylvania, operates globally, providing treated wood products, wood treatment chemicals, and carbon compounds.
