Deal to Sell Koppers Unit Falls Through

Koppers Co. on Friday announced the collapse of a $660-million deal to sell its chemicals division to a management-led group.

The sale would have helped British construction magnate Brian Beazer finance his $1.8-billion purchase of Koppers. Beazer said he was optimistic that other buyers could be found for the chemicals business.

The announcement came a day after sources said recent concerns about the chemical segment’s environmental liabilities were jeopardizing the agreement for Beazer to sell the operations to managers and their outside partner.

Beazer and his takeover partners, Shearson Lehman Hutton Inc. and a British bank, had agreed to remain responsible for the environmental liabilities after the leveraged buyout.

Beazer expressed confidence Friday that a sale could be arranged with other parties.

Managers Must Compete

“We have received a number of inquiries relating to this transaction over a period of several months,” he said by telephone from Koppers headquarters in Pittsburgh. “We have not pursued those inquiries because of our undertaking to give exclusivity to the management group. It is our intention to seek purchasers of a serious nature immediately, and that is already under way. We do not expect any difficulty.”

Beazer gave the managers the exclusive right to negotiate for the business.