A review of its product mix has led to the sale of Tolko’s Ashcroft Treating Plant.
Tolko Industries Ltd. has signed an Asset Purchase Agreement for the sale of its Ashcroft Treating Plant to Koppers Inc. The decision to sell follows a thorough review of Tolko’s product mix.
“Ashcroft has been a strong performer in our asset mix since 2004,” said Brad Thorlakson, president and CEO of Tolko.
“However, we have decided to focus our efforts on our wood products and paper operations moving forward.”
Thorlakson went on to say, “One of the key reasons Ashcroft has become a successful business is through the contributions of our employees. The Ashcroft team has consistently delivered company leading safety performance and a quality product for our customers.
“One of the main reasons I am so pleased to enter into this agreement with Koppers, is that they share an excellent financial track record, they value employee health and safety, the environment, their local communities, and their ability to deliver innovative solutions for their customers. With these strong principles guiding the company, I feel comfortable in knowing that the Ashcroft team will be in good hands.
“With regards to employment, we want to assure our employees at Ashcroft that their employment will continue and the transition will be seamless for all employees.”
Tolko is also committed to working with Koppers to ensure a smooth transfer of contracts with suppliers and customers.
Ashcroft Treating produces railway ties, bridge timbers and crossing planks and employs approximately 28 people.
The proposed transaction between Koppers and Tolko is subject to certain closing conditions. Koppers expects the acquisition to close within 30 days with the purchase price being funded primarily by cash on hand.
Walt Turner, President and CEO of Koppers, said, “The acquisition of Tolko’s Ashcroft crosstie treating business strengthens our presence in the Canadian railroad industry as well as the northwest region of the United States. This transaction fits well with our strategic growth plan for our railroad products and services business in North America as we continue to build on our commitment of providing quality products and services to the railroad industry.”
Koppers, with corporate headquarters and a research center in Pittsburgh, Pennsylvania, is a global integrated producer of carbon compounds and treated wood products. Including its joint ventures, Koppers operates facilities in the United States, United Kingdom, Denmark, the Netherlands, Australia, and China.