Arch Chemicals Purchases Remaining 51 Percent Share in Koppers-Arch Wood Protection Joint Venture in Australia
Thursday July 5, 6:00 pm ET
NORWALK, Conn.--(BUSINESS WIRE)--Arch Chemicals, Inc. has announced that it has purchased the remaining 51 percent of its Koppers-Arch joint venture ("KAJV") in Australia from Koppers Holdings Inc., its joint venture partner. The business produces and markets a full line of wood preservative products tailored for the wood processing and forestry industries in Australia, New Zealand, South Africa, Asia and the Pacific Islands.
The total purchase price was $19 million consisting of a cash payment of $15.4 million and 51% of the joint venture's net debt of $7.0 million. The acquisition is subject to a post-closing working capital adjustment.
Headquartered in Sydney, Australia, KAJV is a leading producer of wood preservatives used in both residential and industrial applications. The entity reported 2006 sales of $54.1 million and net income of $1.2 million. Results in 2006 were adversely impacted by high copper raw material and legal costs. Arch reported equity in earnings of $0.5 million in 2006 for its share in KAJV.
"The acquisition of Koppers-Arch is a key component in our international wood preservatives business expansion strategy," said Arch Chemicals' Chairman, President and CEO Michael E. Campbell. "It nicely complements our existing business and also provides excellent geographic expansion opportunities in Asia. In addition, we have a number of exciting new products, services and technology developments that we plan to introduce to China and other Australasian markets."
Headquartered in Smyrna, Georgia, Arch Wood Protection, Inc. and related international affiliates are acknowledged world leaders in the development and marketing of chemical solutions that enhance the properties of wood. These businesses manufacture wood preservatives, fire retardants, mold inhibitors, and anti-sapstain products, and license the industry's best-known brands of pressure-treated wood, including Wolmanized® wood and Dricon® fire retardant treated wood.
Headquartered in Norwalk, Connecticut (USA), Arch Chemicals, Inc. is a global Biocides company with annual sales of approximately $1.4 billion. Arch and its subsidiaries provide innovative, chemistry-based solutions to control the growth of harmful microbes. The Company's concentration is in water, hair and skin care products, pressure-treated wood, paints and coatings, building products and health and hygiene applications. Arch Chemicals operates in two segments: Treatment Products and Performance Products. Together with its subsidiaries, Arch has approximately 3,000 employees and manufacturing and customer-support facilities in North and South America, Europe, Asia and Africa.
Source: Arch Chemicals, Inc.
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