Wood products company Koppers Inc. said Monday that it will acquire the wood preservation and railroad services businesses of Osmose Holdings Inc. in a deal valued at $460 million.
The Pittsburgh-based company said the deal will help Koppers expand its chemicals offerings and railroad services.
Osmose's wood preservation business sells wood preservation chemicals and wood treatment technologies. Its railroad services business provides railroad infrastructure services, including bridge inspection, engineering, maintenance and construction services. The business units generated revenue of roughly $390 million in 2013.
Koppers said the purchase price includes the value of an anticipated tax benefit that would provide cash savings of approximately $7 million over the next 15 years.
The deal is expected to close in the third quarter of 2014.
Shares of Koppers jumped $3.10, an 8 percent increase, to $42.49 by midmorning, far outpacing broader market gains.