Koppers acquires Cox industrial division
Koppers Holdings Inc., the provider of treated wood products, wood treatment chemicals and carbon compounds, has acquired the industrial division of Cox Industries.
Cox Industrial, based in Orangeburg, S.C., manufactures and distributes power distribution and transmission poles, pilings and related products to investor-owned utilities, electric cooperatives, municipalities and other entities.
Following the $200 cash deal, which was expected to close on April 11, the purchase creates a new leading utility pole and wood treatment producer and advances Koppers strategy of being a vertically integrated company. Pittsburgh, Pa.-based Koppers exited the utility pole market in 2015 when it sold the business to Cox.
"While we were working hard during the past several years to restructure our operations and reduce our balance sheet leverage, Cox Industrial grew to become the largest supplier of utility poles in the eastern U.S. The opportunity to re-enter this market with the scale to better compete, along with gaining a growth-focused management team, was attractive and compelling,” said Koppers president and CEO Leroy Ball.
Cox Industrial operations include 8 manufacturing locations, 3 dedicated peeling facilities, and 19 reload yards. This past December, Cox sold off its residential lumber business to Culpeper Wood Preservers, a Virginia-based wood treater.
Cox Industrial will be renamed as the Utility and Industrial Products unit of Koppers.
Including the Utility and Industrial Products unit, Koppers expects that 2018 sales will be approximately $1.9 billion, with adjusted earnings before interest, taxes, depreciation and amortization estimated at $240 million.
Cox Industrial, based in Orangeburg, S.C., manufactures and distributes power distribution and transmission poles, pilings and related products to investor-owned utilities, electric cooperatives, municipalities and other entities.
Following the $200 cash deal, which was expected to close on April 11, the purchase creates a new leading utility pole and wood treatment producer and advances Koppers strategy of being a vertically integrated company. Pittsburgh, Pa.-based Koppers exited the utility pole market in 2015 when it sold the business to Cox.
"While we were working hard during the past several years to restructure our operations and reduce our balance sheet leverage, Cox Industrial grew to become the largest supplier of utility poles in the eastern U.S. The opportunity to re-enter this market with the scale to better compete, along with gaining a growth-focused management team, was attractive and compelling,” said Koppers president and CEO Leroy Ball.
Cox Industrial operations include 8 manufacturing locations, 3 dedicated peeling facilities, and 19 reload yards. This past December, Cox sold off its residential lumber business to Culpeper Wood Preservers, a Virginia-based wood treater.
Cox Industrial will be renamed as the Utility and Industrial Products unit of Koppers.
Including the Utility and Industrial Products unit, Koppers expects that 2018 sales will be approximately $1.9 billion, with adjusted earnings before interest, taxes, depreciation and amortization estimated at $240 million.