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Utility pole treater Brown Wood Preserving to become part of Koppers

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Koppers Holdings, Pittsburgh, Pa., has agreed to acquire the assets of Brown Wood Preserving Co., Louisville, Ky., through its Koppers Utility and Industrial Products subsidiary.

The purchase, for $100 million in cash, is expected to close in the second quarter of 2024.

 James Sullivan, president and chief operating officer of Koppers, said, “I am really pleased to add the Brown Wood group to the Koppers team. Together, we will be able to bring even greater capabilities to our customer base while growing our geographic reach. I am excited to see the results of this combination in the Koppers portfolio and the positive impact it will have on the profitability of our now larger global utility business.”

CEO Leroy Ball added, “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. 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.”

Founded in 1929, Brown Wood has approximately 100 employees, serving customers primarily in the Midwest and Southeast, with locations in Kennedy, Al., and Mathiston, Ms.

Upon close of the deal, Brown Wood will operate as part of Koppers Utility and Industrial Products.