Koppers Utility and Industrial Products (UIP), a wholly owned subsidiary of Pittsburgh-based Koppers Holdings recently completed its purchase of Brown Wood Preserving Co. for approximately $100 million in cash.
The purchase also includes certain Brown Wood affiliates’ assets.
“The addition of the Brown Wood assets to our portfolio provides sales and production support in our existing markets,” James Sullivan, Koppers president and chief operating officer, said. “More importantly, this addition offers an attractive entry point to new geographic markets. I’m excited to get started on the integration and begin capitalizing on the combined resources of our two businesses.”
Brown Wood produces pressure-treated wood utility poles and will become part of Koppers UIP.
The purchase is expected to contribute between $15 million and $25 million in earnings before interest, taxes, depreciation, and amortization in 2025. The company will provide details on its expectations for 2024 in early May during the company’s first-quarter earnings call.
Koppers is a provider of treated-wood products, wood treatment chemicals, and carbon compounds used in a diverse range of end markets including the agriculture, aluminum, construction residential lumber, railroad, rubber, specialty chemical, steel, and utility industries.
The company has manufacturing and distribution facilities located in North America, South America, Australasia, and Europe.