Koppers Announces Agreement to Acquire Ridolfo Forestry Products Business in Western Australia
Koppers Wood Products Pty Ltd, a subsidiary of Koppers Holdings (NYSE: KOP), announced an agreement to acquire the Western Poles (Western Poles) business from Ridolfo Forestry Products Pty Limited (Ridolfo), for an undisclosed purchase price. The closing of the transaction is subject to certain conditions and is expected to be completed by the end of November 2012. Western Poles conducts business primarily in the State of Western Australia procuring and processing timber for the Western Australian utility pole market. Their primary customer is Western Power, which maintains approximately 660,000 utility poles in its system. The acquisition represents further vertical integration in the utility pole supply chain for Koppers and is expected to provide additional annual pole sales in excess of $10 million.
Walt Turner, president and CEO of Koppers, said, "We are excited with this opportunity to add the Western Poles business to our existing utility pole presence in Bunbury, Western Australia. The substantial increases in infrastructure spending over the next five years will provide ongoing opportunities to grow this business."
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