Synalloy closes acquisition Texas-based, Palmer

Synalloy closes acquisition of Texas-based, Palmer

6:29 AM, 24th August 2012
Synalloy closes acquisition of Texas-based, Palmer

SPARTANBURG, US: Synalloy Corporation reported on 13 August, 2012 that it has agreed to purchase stock of Lee-Var Inc, dba Palmer of Texas. On August 21, 2012, the company closed the transaction contemplated by the stock purchase agreement.

In recent years, Palmer’s business has been focused on providing fibreglass (FRP) and steel tanks to the oil industry. Their primary facility in Andrews, Texas, is strategically located in the heart of Permian Basin of West Texas and also serves other liquid rich shale areas including Anadarko Basin, Eagle Ford Shale and Barnett Shale. Palmer also operates a temporary facility on Sabine River in Orange, Texas, where it builds oversized FRP tanks for international customers.

The transaction is expected to be immediately accretive to Synalloy’s earnings. At Palmer’s current level of revenues, Synalloy is projecting a contribution of $0.30 per share to its annual earnings. The acquisition was funded through a credit agreement with its current bank to increase the limit of its line of credit by $5,000,000 to a maximum of $25,000,000 and extended the maturity date to August 21, 2015. The credit agreement also included a ten-year term loan for $22,500,000 that requires equal monthly payments of $187,500 plus interest.

©WOC News

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


SGL to supply HCl recovery system to Chinese firm

WIESBADEN, GERMANY/SHANGHAI, CHINA: SGL Group and Qinghai Salt Lake Industry Co Ltd held a project launch ceremony to celebrate contract signing for t ...

Read more
Vertellus in final stages to settle West Virginia Superfund site issues

INDIANAPOLIS, US: A pending settlement by Vertellus Specialties Inc of federal and state claims involving a former West Virginia manufacturing site pr ...

Read more
Mitsubishi to buy A Schulman’s PVC plant in US

TOKYO, JAPAN: Mitsubishi Chemical Performance Polymers Inc (MCPP), a wholly-owned subsidiary of Mitsubishi Chemical Corporation (MCC) intends to purch ...

Read more
Olin acquires KA Steel Chemicals for $328 million

CLAYTON, US: Olin Corporation has completed the previously announced acquisition of privately held KA Steel Chemicals Inc, on a cash free, debt free b ...

Read more
Foster Wheeler bags Petrobras contract for gas to chemicals complex

ZUG, SWITZERLAND: Foster Wheeler AG’s Global Engineering and Construction Group subsidiary has been awarded a contract by Petroleo Brasileiro SA ...

Read more
ThyssenKrupp bags ZapSibNeftechim’s contract in Russia

ESSEN, GERMANY: ThyssenKrupp plant construction business won a front-end engineering and design (FEED) contract for a single-train polypropylene plant ...

Read more