AddThis

Osmose wood preservation business sold to Koppers

Pittsburgh-based Koppers Inc. agreed to acquire the Wood Preservation and Railroad Services business of Osmose Holdings for $460 million.

Revenues for the acquired businesses in 2013 were about $390 million. 

Koppers president and CEO Walt Turner described the acquisition as a complimentary move. “Importantly, the business culture of Osmose is closely aligned with that of Koppers, which should provide for a smooth integration allowing us to fully capture synergies and realize the earnings and margin accretion that we have identified during our due diligence process.” 

Osmose’s Wood Preservation business is a global leader in developing, manufacturing and marketing wood preservation chemicals and wood treatment technologies. Last year’s sales were about $350 million, according to the announcement. Osmose’s railroad services included bridge inspection, engineering, maintenance and repair generated about $40 million in 2013 revenues.

In a letter to customers, Osmose executives described the move as a positive for the company and its customers.

"Osmose Wood Preserving will continue to operate as it has with very little visible change to our customers and markets," read a letter signed by Osmose senior VPs Steve Reeder and Gary Converse. "We look forward to serving our customers as we always have, and we consider this acquisition to be a very postivite development for Osmose and our customers' future success."

The transaction is expected to close in the third quarter of 2014.


Want to read more?
This content is available only to registered users. Log in to read the rest of this article or create a free account.
© 2014 Home Channel News. All Rights Reserved.