- Koppers Holding's (NYSE:KOP +5.9%) subsidiary has signed an agreement to acquire (expects to fully close at the end of business today) an Industrial division of Cox Industries Inc. (Cox Industrial) for ~$200M in cash.
- Cox Industrial manufactures and distributes power distribution and transmission poles, pilings and related products to investor-owned utilities, electric cooperatives, municipalities and other entities.
- Koppers increases 2018 forecast to $1.9B sales and $240M adj. EBITDA.
- Commenting on the transaction, President and CEO Leroy Ball said, "We are thrilled to return to the U.S. utility pole market with a significantly larger presence than when we exited the business in January 2015. 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. In addition to numerous synergies being explored, we plan to focus on continuing to grow the business organically as well as through strategic partnerships and select acquisitions."
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.