Koppers Holdings Inc. has acquired the crosstie pre-plating business and related assets from Coastal Timbers, Inc. , a timber products supplier based in New Iberia, La. Terms were not disclosed.
This business, which is based on proprietary technology, is expected to generate approximately $15 million of annual revenue, according to a press release from Koppers. Management estimates that the total annual market for pre-plated crossties is approximately $20-25 million. The purchase, which includes the rights to a patent on the pre-plating equipment, is part of Koppers' strategy to expand the services it provides to its railroad customer base.
The new equipment will be used at existing Koppers facilities. Koppers, based in Pittsbugh, is a global integrated producer of carbon compounds and treated wood products. Including joint ventures, Koppers operates facilities in the United States, United Kingdom, Denmark, Australia, and China.
"The purchase of this business is a continuation of our strategy of performing more services for the Class I railroads," said Walt Turner, president and CEO of Koppers. "We are excited about the opportunity to perform more services in a cost-effective way for our Class I customers, and we believe we are uniquely positioned to provide these services by virtue of our existing customer relationships coupled with the logistical benefits of having our treating plants located on their existing rail networks."