Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc. (NYSE: KOP), announced that it has signed an Asset Purchase Agreement to acquire the Rail Joint business product line and related manufacturing facility of Portec Rail Products, Inc. ("Portec") for an undisclosed purchase price.
The proposed transaction between Koppers and Portec is subject to certain regulatory approvals (including approval by the Antitrust Division of the Department of Justice) and other closing conditions. Although there is no guarantee that the required approvals will be obtained or that the conditions will be satisfied, Koppers fully expects the acquisition to close by December 31, 2010 with the purchase price being funded by cash on hand.
The Portec Rail Joint business serves the domestic and international railroad markets with a variety of specialty rail products out of one location in Huntington, West Virginia. Revenues for the business in 2010 are estimated at approximately $22 million.
Walt Turner, President and CEO of Koppers, said, "The acquisition of Portec's Rail Joint business will strengthen our presence in the railroad industry, further enhancing our relationships and scope of products and services that we provide. We view this transaction as part of our continuing process and commitment to provide quality products and services to the railroad industry."
Source: http://www.koppers.com/