Family-Owned Cox Industries Completes $200 Million Sale of Industrial Division to Koppers (NYSE:KOP)

Family-Owned Cox Industries Completes $200 Million Sale of Industrial Division to Koppers (NYSE:KOP)

Genesis Capital is pleased to announce Cox Industries, Inc. (“Cox”) has sold its Industrial division to Koppers, Inc. (“Koppers”) for approximately $200 million in cash. Cox manufactures and distributes power distribution and transmission poles, pilings and related products to investor-owned utilities, electric cooperatives, municipalities and other entities. The transaction creates a leading utility pole and wood treatment producer and advances Koppers strategy of being a vertically integrated, high-value global supplier of wood-based technologies to infrastructure markets.

CEO and President of Cox Industries, Inc., R. Michael Johnson, said, “We know Koppers well, having enjoyed a strong relationship with the management team over the years, and we share a commitment to providing innovative products and strong customer service to our served markets. We believe that our complementary customer-centric mindset, expanded product portfolio, and enhanced innovation and geographic reach should benefit our collective stakeholders.”

Commenting on the transaction, Koppers President and CEO, Leroy Ball said, “We are thrilled to return to the U.S. utility pole market with a significantly larger presence than when we exited the business in January 2015.  While we were working hard during the past several years to restructure our operations and reduce our balance sheet leverage, Cox Industrial grew to become the largest supplier of utility poles in the eastern U.S. The opportunity to re-enter this market with the scale to better compete, along with gaining a growth-focused management team, was attractive and compelling. In addition to numerous synergies being explored, we plan to focus on continuing to grow the business organically as well as through strategic partnerships and select acquisitions.”

Cox Industrial is one of a few industry players that competes on a national level due to its capacity, scale and breadth of treatment options, and proven track record of storm response. Cox Industrial facilities are strategically located near railroads and ports to facilitate shipments throughout the U.S. The operations include eight manufacturing locations, three dedicated peeling facilities, and 19 reload yards which support its market leadership position and opportunities for further growth in key expansion markets. On a combined basis, Koppers and Cox Industrial will result in a powerful platform with national scale and local expertise.

Genesis Capital LLC served as financial advisor to Cox Industries, Inc. while Womble Bond Dickinson LLP provided legal counsel. Wells Fargo Securities, LLC acted as financial advisor to Koppers and K&L Gates LLP acted as legal counsel. Committed financing will be provided by PNC Bank, National Association.

About Cox Industries

Cox Industries is a leading U.S. producer of wood utility poles and marine construction products serving a wide range of customers nationwide.  Cox operates multiple production facilities in eight different states.  In addition to supplying much-needed products to support America’s infrastructure, Cox also provides additional services to help customers manage the end-of-life disposal of poles in an environmentally sensitive manner.

About Koppers

Koppers is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds. Its 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 its joint ventures, Koppers serves customers through a comprehensive global manufacturing and distribution network, with facilities located in North America, South America, Australasia, China and Europe.

Company Type: Family-Owned Businesses

Transasction Type: Sellside M&A

Industry: Industrial Manufacturing