Koppers Inc. is paying $460 million for Osmose Holdings Inc.'s wood preservation and railroad services businesses.

The wood preservation operation develops, manufactures and markets chemicals and treatment technology for the infrastructure, residential and commercial construction and agriculture sectors. The business operates in North America, Latin America, Europe, Australia and Asia.

Osmose's railroad services business provides infrastructure services, including bridge inspection, engineering, maintenance and repair, and construction services for railroads in North America.

For Pittsburgh-based Koppers, the deal allows it to expand its chemicals and railroad services offerings. The company focuses on producing carbon compounds and treated wood products. Koppers is a subsidiary of Koppers Holdings Inc. (NYSE: KOP). The company plans to fund the acquisition through a combination of new and existing bank debt, including a new term loan and increase in Koppers' existing revolving credit facility.

Buffalo, N.Y.-based Osmose consists of railroad services, wood preservation and utilities services businesses.

Barclays Capital Inc. is acting as Koppers financial adviser for the deal, while K&L Gates LLP provides legal advice. PNC Bank NA will provide financing.

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