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



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