Jul 9 2007
Koppers Holdings Inc. today announced the sale of its 51% ownership interest in Koppers Arch Investments Pty Ltd. ("Koppers Arch") to Arch Chemicals, Inc. , its joint venture partner. Koppers Arch sells timber preservation chemicals and has operations in Australia, New Zealand, Southeast Asia and South Africa. Its products are primarily non-coal tar based chemicals, including copper chrome arsenates ("CCA") and light organic solvent preservatives ("LOSP").
Revenues for Koppers Arch for 2006 net of inter-company sales amounted to $51.5 million, or 4% of 2006 sales, and net income amounted to $1.1 million net of inter-company transactions ($0.6 million after minority interest). The estimated selling price is approximately $19 million, which the Company intends to use primarily for debt reduction. The selling price is subject to a post-closing working capital adjustment.
Walter W. Turner, President and CEO of Koppers, said, "We were pleased to complete this sale to our long-time partner Arch Chemicals and believe that the change in ownership will be beneficial to all parties including the customers and employees of the former joint venture. More specifically for Koppers, the completion of this transaction enhances our focus on our core business strategies in support of continued growth in the aluminum and railroad markets and allows us to accelerate debt reduction."