The base purchase price for the two businesses is $460 million and is subject to certain closing adjustments. Revenues for the two businesses in 2013 were approximately $390 million. Koppers plans to finance the purchase through new and existing bank debt and transaction is expected to close in the third quarter of 2014.
Osmose's Railroad Services business is a provider of railroad infrastructure services, including bridge inspection, engineering, maintenance and repair and construction services for the Class 1 and shortline railroads in North America. The business accounted for $40 million of revenue in 2013.
"Acquiring these businesses from Osmose represents another important step in our long-term growth strategy by expanding both our chemicals offering and extending our existing railroad and utilities products and services platform," said Walt Turner, president and chief executive officer of Koppers. "This unique growth opportunity will complement our existing businesses through leading market positions in strategic end-markets. Importantly, the business culture of Osmose is closely aligned with that of Koppers, which should provide for a smooth integration, allowing us to fully capture synergies and realize the earnings and margin accretion that we have identified during our due diligence process. The addition of these two businesses is very exciting for Koppers and will strongly contribute towards our ultimate goal of increasing shareholder value."