Fangda Carbon and C-Chem’s $107 Million Acquisition of Koppers


Winston & Strawn, LLP represented Koppers Holdings Inc. in the transaction.

Fangda Carbon New Material Co., Ltd. (Fangda Carbon) and C-Chem Co., Ltd, a subsidiary of NIPPON STEEL Chemical & Material Co., Ltd., executed the acquisition of Koppers (Jiangsu) Carbon Chemical Company Limited (KJCC).

The closing of the transaction is subject to customary closing conditions, including receipt of regulatory approvals in China and approval of the transaction by the shareholders of Fangda Carbon. Koppers estimates that regulatory approvals could be received in approximately four to six months based upon the timeline for similar transactions.

The total purchase price is $107 million, adjusted for cash, working capital at closing and adjusted to the extent certain capital expenditures of KJCC are incurred prior to closing and indebtedness of the transaction.

Koppers expects to realize approximately $65 million of net cash, after noncontrolling interest, taxes and expenses. Koppers plans to apply the cash proceeds toward debt reduction, consistent with its stated goals.

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.

Koppers Holdings Inc. (NYSE: KOP) is an integrated global provider of treated wood products, wood treatment chemicals and carbon compounds.

Winston & Strawn team was led by Partner Oscar A. David (Picture; Chicago), and included Associates Ann-Christine Stepien (Chicago), Kristin D. Wickler (Chicago), Anne D. Hartmann (Chicago), and Partner Courtney M.W. Tygesson (Chicago).

Involved fees earner: Oscar David – Winston & Strawn; Anne Hartmann – Winston & Strawn; Ann-Christine Stepien – Winston & Strawn; Courtney Tygesson – Winston & Strawn; Kristin Wickler – Winston & Strawn;

Law Firms: Winston & Strawn;

Clients: Koppers Holdings;

Author: Ambrogio Visconti