SOURCE: Koppers Holdings Inc.

August 04, 2008 08:48 ET

Koppers Agrees to Sell Coke Plant

PITTSBURGH, PA--(Marketwire - August 4, 2008) - Koppers Holdings Inc. (NYSE: KOP) announced today that its wholly owned subsidiary, Koppers Inc., has entered into a definitive agreement to sell its metallurgical coke plant located in Monessen, Pennsylvania to ArcelorMittal SA for a purchase price of approximately $160 million. Closing of the transaction is subject to customary closing conditions including regulatory approvals required under the Hart-Scott-Rodino Act. Koppers expects the transaction to be completed in the fourth quarter of 2008.

Revenues for the Monessen plant for the first quarter of 2008 net of inter-company sales amounted to approximately $16 million, or 5% of first quarter 2008 sales.

Walter W. Turner, President and CEO of Koppers, said, "We are pleased to have been able to negotiate this sale of what we view as a non-core business and believe that the change in ownership will be beneficial to all parties including the customers and employees of the Monessen plant. More specifically for Koppers, the completion of this transaction enhances our focus on our core business strategies in support of continued growth in the aluminum and railroad markets and provides for enhanced balance sheet flexibility with regards to merger and acquisition opportunities, refinancing, dividends and share repurchases."

UBS Securities, LLC is acting as exclusive financial advisor to Koppers Holdings Inc. Reed Smith LLP is acting as legal advisor to Koppers Holdings Inc.

About Koppers

Koppers, with corporate headquarters and a research center in Pittsburgh, Pennsylvania, is a global integrated producer of carbon compounds and treated wood products. Koppers operates facilities in the United States, United Kingdom, Denmark, Australia and China. 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 Brian H. McCurrie at 412 227 2153 or Michael W. Snyder at 412 227 2131.

Safe Harbor Statement

This news release may contain forward-looking statements based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Koppers, particularly its latest annual report on Form 10-K and quarterly report on Form 10-Q, as well as others, could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; the loss of one or more key customer or supplier relationships; customer insolvencies; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost and availability of raw materials; and other economic, business, competitive, regulatory and/or operational factors affecting the business of Koppers generally.

Contact Information

  • For Information:
    Brian H. McCurrie
    Vice President, Chief Financial Officer
    412 227 2153
    Email Contact