Vernon, B.C.-based forest products company Tolko Industries Ltd recently sold its crosstie treating business and related manufacturing facility to Koppers Holdings Inc (NYSE: KOP) for $32.4 million. The Tolko treating division produces railway ties, bridge timbers and crossing planks. Koppers, a Pittsburgh, Penn.-based integrated producer of carbon compounds and treated wood products, said the acquisition will strengthen its presence in the Canadian railroad industry as well as in the northwest U.S. Koppers is a portfolio company of New York-based private equity firm Saratoga Partners. Capital West Partners acted as financial advisor to Tolko in the transaction.
Koppers Completes Acquisition of Railroad Products Business
PITTSBURGH, PA — (Marketwired) — 01/21/14 — Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc. (NYSE: KOP), has completed the purchase of the crosstie treating business and related manufacturing facility of Tolko Industries Ltd. located in Ashcroft, British Columbia, Canada. The purchase price, after an adjustment for working capital of CAD$0.9 million, was CAD$32.4 million subject to post-closing adjustments. The purchase has been funded primarily by cash on hand.
Walt Turner, President and CEO of Koppers, said, “We are pleased to complete the acquisition of Tolko’s Ashcroft crosstie treating business, which will strengthen our presence in the Canadian railroad industry as well as the northwest region of the United States. I am excited to welcome our new Ashcroft employees to the Koppers family.”
Koppers, with corporate headquarters and a research center in Pittsburgh, Pennsylvania, is a global integrated producer of carbon compounds and treated wood products. Including its joint ventures, Koppers operates facilities in the United States, United Kingdom, Denmark, the Netherlands, Australia, and China. 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 Leroy M. Ball at 412 227 2118 or Michael W. Snyder at 412 227 2131.
Safe Harbor Statement
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may include, but are not limited to, statements about sales levels, restructuring, profitability and anticipated expenses and cash outflows. All forward-looking statements involve risks and uncertainties. All statements contained herein that are not clearly historical in nature are forward-looking, and words such as “believe,” “anticipate,” “expect,” “estimate,” “may,” “will,” “should,” “continue,” “plans,” “intends,” “likely,” or other similar words or phrases are generally intended to identify forward-looking statements. Any forward-looking statement contained herein, in other press releases, written statements or documents filed with the Securities and Exchange Commission, or in Koppers communications with and discussions with investors and analysts in the normal course of business through meetings, phone calls and conference calls, regarding expectations with respect to sales, earnings, cash flows, operating efficiencies, product introduction or expansion, the benefits of acquisitions and divestitures or other matters as well as financings and repurchases of debt or equity securities, are subject to known and unknown risks, uncertainties and contingencies. Many of these risks, uncertainties and contingencies are beyond our control, and may cause actual results, performance or achievements to differ materially from anticipated results, performance or achievements. Factors that might affect such forward-looking statements, include, among other things, general economic and business conditions, demand for Koppers goods and services, competitive conditions, interest rate and foreign currency rate fluctuations, availability of key raw materials and unfavorable resolution of claims against us, as well as those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly our latest annual report on Form 10-K and quarterly report on Form 10-Q. Any forward-looking statements in this release speak only as of the date of this release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.
Leroy M. Ball
Vice President, Chief Financial Officer
412 227 2118
Source: Koppers Holdings Inc.
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