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Tuesday, December 08, 2009

Koppers signs letter of intent to purchase Cindu

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Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc., has signed a letter of intent to acquire 100 percent of the outstanding shares of privately-owned Cindu Chemicals B.V. from joint owners Cindu B.V. and Corus Staal B.V. for an undisclosed purchase price. The proposed transaction is subject to the negotiation and execution of a definitive purchase and sale agreement, the completion of due diligence, certain regulatory approvals, consultation with Cindu's Works Council, and other customary closing conditions. Upon completion, Koppers expects to fund the acquisition primarily with cash.

Cindu's operations and end markets are similar to those of other plants within the Carbon Materials and Chemicals business unit. Primary products include carbon pitch, naphthalene, carbon black feedstock and certain specialty products and coatings. The most recently reported sales for Cindu were for the year ended December 31, 2008 and totaled approximately EUR 50 million. The business includes a 140,000 metric ton tar distillation plant located in Uithoorn, Netherlands, storage tanks located at the Port of Amsterdam, and a long-term tar supply contract with Corus Staal.

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