A wholly owned subsidiary of Pittsburgh-based Koppers Holdings, a treated wood products, wood treatment chemicals, and carbon compounds provider, recently agreed to purchase nearly all of Kentucky-based Brown Wood Preserving Co.’s assets and some of its affiliates for approximately $100 million.
Under the terms of the agreement, Koppers Utility and Industrial Products will make the purchase in cash, subject to certain closing adjustments.
Brown Wood manufactures and sells pressure-treated wood utility poles, serving customers primarily in the Midwest and Southeast. It has facilities in Alabama and Mississippi and employs approximately 100 people.
“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,” Leroy Ball, Koppers president and chief operating officer, said. “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.”
The deal is expected to close during the second quarter of 2024. Once completed, Brown Wood will be operated as part of Koppers Utility and Industrial Products.