Synalloy acquire Palmer Texas, US

Synalloy to acquire Palmer of Texas, US

5:05 AM, 16th August 2012
Synalloy to acquire Palmer of Texas, US
Craig C Bram, President and CEO, Synalloy.

SPARTANBURG, US: Synalloy Corporation will acquire Palmer of Texas, a leading manufacturer of liquid storage solutions and separation equipment for the petroleum, municipal water, wastewater, chemical and food industries. The all-cash transaction is valued at $25,575,000, plus working capital and fixed asset adjustments at and after closing. The transaction is expected to close by August 25, 2012.

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 the Permian Basin of west Texas and also serves other liquid rich shale areas including the Anadarko Basin, Eagle Ford Shale and the Barnett Shale.

Palmer also operates a temporary facility on the Sabine River in Orange, Texas, where it builds oversized FRP tanks for international customers. With 137 employees, Palmer generated $32 million in revenues for the trailing twelve months ended May 31, 2012. 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.

“Jim Lee, Palmer’s President since 1989, has done an outstanding job of growing Palmer’s business. Also, Jim and his management team have agreed to continue to run the Palmer operation going forward. Palmer’s business is an excellent complement to Synalloy’s Metals unit as we service many of the same markets and have the ability to drive efficiencies in purchasing and operations,” said Craig C Bram, President and CEO, Synalloy.

© 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


Ecolab opens new manufacturing plant in China

ST PAUL, US: Ecolab Inc opened a new manufacturing plant and distribution centre in Taicang, China, as part of an expanding company presence within th ...

Read more
CB&I bags BASF butadiene extraction plant contract in Belgium

THE WOODLANDS, US: CB&I is awarded a contract by BASF for the engineering, procurement and construction management of a new butadiene extraction p ...

Read more
BASF expands automotive coatings production in China

SHANGHAI, CHINA: BASF Shanghai Coatings Company Limited is investing in a new basecoat plant at the Shanghai Chemical Industry Park in Shanghai, China ...

Read more
KBR, Shell Global Solutions expand hydroprocessing technology alliance

HOUSTON, US: KBR and Shell Global Solutions International announced the expansion of their hydroprocessing technology alliance. In addition to hydro ...

Read more
Samsung Engineering wins $843 mn fertilizer plant contract in Bolivia

LA PAZ, BOLIVIA: Samsung Engineering Co has won an order for $843 million fertilizer plant from Yacimientos Petrolíferos Fiscales Bolivianos ...

Read more
Ashland introduces colour essential technology

WILMINGTON, US: Ashland Specialty Ingredients, a commercial unit of Ashland Inc is launching the new ‘Colour Essentials’ technology and fo ...

Read more