PITTSBURGH, PA -- (Marketwired) -- 01/20/15 --
Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc. (NYSE: KOP), announced today that it has acquired the creosote distribution business of KMG Chemicals, Inc. (KMG) for $12.5 million plus the fair market value of inventory which is estimated at $3.0 million. In addition to inventory, the acquisition includes the transfer of leased railcars and storage tanks from KMG to Koppers, as well as various customer agreements. Operating results from this business will be included in Koppers Carbon Materials and Chemicals business segment.
Tom Loadman, vice president of Railroad and Utility Products and Services, said, "This acquisition reaffirms our corporate commitment to serve the North American railroad industry in all aspects of crosstie supply from procurement to processing and distribution to preservative supply."
Leroy Ball, president and CEO of Koppers, said, "While we expect this acquisition to be additive to our Carbon Materials and Chemicals business segment, the driver for this acquisition was to help ensure consistent supply for this important component of the railroad crosstie treating process. An anticipated additional benefit of the acquisition is the strategic location of leased tank space which provides an attractive option for importing coal tar to supplement a coal tar-short market in North America. The added flexibility to handle imported raw material will help to mitigate the risk associated with future supply from an uncertain domestic steel industry."
Raptor Partners LLC acted as financial advisor and K&L Gates LLP acted as legal counsel to Koppers Inc. in the transaction.
About Koppers
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global producer of carbon compounds, chemicals, and treated wood products and services for the aluminum, railroad, specialty chemical, utility, rubber, concrete, steel, residential lumber, and agriculture industries. Including our joint ventures, we serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, China and Europe. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP." For more information, visit us on the Web: www.koppers.com. Questions concerning investor relations should be directed to Michael J. Zugay at 412 227 2231 or Michael W. Snyder at 412 227 2131.
Safe Harbor Statement
This news release may contain forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; the loss of one or more key customer or supplier relationships; customer insolvencies; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost and availability of raw materials; and other economic, business, competitive, regulatory and/or operational factors affecting the business of Koppers generally.
For Information:
Michael J. Zugay
Chief Financial Officer
412 227 2231
Email contact
Source: Koppers Holdings Inc.