Koppers Holdings Inc. Announces Amendment to KJCC Sale Agreement
Koppers Holdings Inc. (“Koppers”), an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds, today announced an amendment to its definitive agreement to sell Koppers (Jiangsu) Carbon Chemical Company Limited (“KJCC”) to Fangda Carbon New Material Co., Ltd. and C-Chem Co., Ltd., a subsidiary of NIPPON STEEL Chemical & Material Co., Ltd. KJCC is a tar distillation facility located in Pizhou City, Jiangsu Province, China and is 75-percent owned by the Company with the remaining 25 percent owned by Yizhou Group Company Limited (“Yizhou”).
The definitive agreement was first announced in February 2020, and in April 2020, the State Administration for Market Regulation of China (“SAMR”) gave its approval for the transaction to proceed. The amendment provides for an extension of the closing deadline from August 18, 2020 to September 30, 2020 and a payment of $10 million in earnest money to Koppers, which has been received and will be applied against the acquisition price at closing. In addition, the extension applies to the previously disclosed contractual dispute related to application of contractual pricing terms between KJCC and its largest customer in China, which will continue to be resolved upon the successful closing of the transaction.
If the closing of the transaction does not occur by September 30, 2020, subject to certain conditions, the earnest money will be retained by Koppers and Yizhou.
Koppers is continuing to work diligently toward the goal of closing the transaction, which is subject to satisfaction of various closing conditions contained in the definitive agreement. As previously stated, the company expects to realize approximately $65 million of net cash, after taxes and expenses, and plans to apply the proceeds toward debt reduction.
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.”
Michael Zugay – Investor Relations – (412) 227-2231
Source: Koppers Holdings, Inc.