Business Context and Reporting Period
Company: Koppers Holdings Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: October 1, 2008
Event Date: October 1, 2008
This filing reports the completion of a strategic asset disposition by Koppers Inc., a wholly-owned subsidiary of Koppers Holdings Inc.
Key Financial Metrics
Transaction Value: Approximately $160 million in cash.
Asset Sold: All equity interests of the entity producing metallurgical coke at the Monessen, Pennsylvania facility.
Buyer: A wholly-owned subsidiary of ArcelorMittal Holdings Inc.
Other Metrics: The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity for the reporting period.
Material Changes
- Asset Disposition: Koppers exited the metallurgical coke production business at its Monessen, PA facility.
- Cash Inflow: The company received approximately $160 million in cash from the sale.
- Commercial Relationship: Koppers maintains an existing commercial relationship with ArcelorMittal, including the purchase of coal tar. Prior to this sale, Koppers also sold furnace coke to an ArcelorMittal subsidiary.
Outlook, Risks, and Management Commentary
Management Commentary: The transaction was executed in accordance with a purchase agreement signed on August 3, 2008. The filing notes the continuation of a commercial relationship with the buyer regarding coal tar purchases.
Guidance and Risks: The filing text does not provide updated financial guidance, specific risk factors, or details on contingencies related to this transaction beyond the completion of the sale.
Investor Verification Checklist
- Verify the exact closing date and final purchase price of the Monessen facility sale.
- Confirm the impact of the $160 million cash inflow on the company's balance sheet and liquidity position.
- Review the terms of the ongoing commercial agreement for coal tar purchases with ArcelorMittal.
- Assess the strategic rationale for divesting the metallurgical coke production asset.