PITTSBURGH, March 11, 2020 /PRNewswire/ -- Koppers Holdings Inc. (NYSE: KOP), an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds, today announced that the shareholders of Fangda Carbon New Material Co., Ltd. (Fangda Carbon) have voted to approve the purchase of Koppers (Jiangsu) Carbon Chemical Company Limited (KJCC), achieving the first milestone in completing the sale of KJCC as announced on February 18, 2020.
KJCC, a tar distillation facility located in Pizhou City, Jiangsu Province, China, is 75 percent owned by Koppers and 25 percent owned by Yizhou Group Company Limited. The total purchase price is $107 million, adjusted for cash, working capital at closing and adjusted to the extent certain capital expenditures of KJCC are incurred prior to closing and indebtedness of the transaction. Koppers expects to realize approximately $65 million of net cash, after noncontrolling interest, taxes and expenses, and plans to apply the cash proceeds toward debt reduction.
Commenting on the news, James A. Sullivan, Executive Vice President and Chief Operating Officer, said, "We are encouraged that Fangda Carbon shareholders have voted to approve this sale and are now able to move on to the required regulatory filings. We are on track to close the transaction by the end of August, which is within our six-month expected timeframe. The divestiture helps Koppers to sharpen the focus on our portfolio of wood-based technologies which are built on our company's purpose of protecting what matters and preserving the future."
About Koppers
Koppers, with corporate headquarters in Pittsburgh, Pennsylvania, is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds. Our products and services are used in a variety of niche applications in a diverse range of end-markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. Including our joint ventures, we serve our customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, China and Europe. The stock of Koppers Holdings Inc. is publicly traded on the New York Stock Exchange under the symbol "KOP." For more information, visit us on the Web: www.koppers.com. Questions concerning investor relations should be directed to Michael Zugay at 412 227 2231 or Quynh McGuire at 412 227 2049.
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SOURCE Koppers