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Synalloy Corporation, a growth oriented company that engages in a number of diverse business activities including the production of stainless steel pipe, fiberglass and steel storage tanks, and specialty chemicals, is pleased to announce that it has acquired Specialty Pipe & Tube, Inc. ("Specialty"). Specialty is a master distributor of seamless carbon pipe, with a focus on heavy wall, large diameter products. End markets for its products include oil and gas, heavy equipment and other industrial businesses where high-pressure applications are required. Specialty was established in 1964 and has distribution centers in Mineral Ridge, Ohio and Houston, Texas. The company generates approximately $30 million in annual revenue and has fewer than 30 employees. The transaction will be accretive to Synalloy''s earnings in the first year following the closing. BB&T Capital Markets served as the exclusive financial advisor to Specialty.
The all-cash transaction is valued at $31.5 million, subject to working capital adjustments post-closing, and potential earn-out payments up to $5 million over two years should the business unit achieve targeted sales revenue.
The acquisition was funded with a combination of cash on hand, additional term debt ($10 million with a five year maturity), and an increase in the company''s line of credit from $25 million to $40 million. Synalloy estimates that its total net debt at the end of 2014 will be approximately $35.4 million.
管材展-鋼管展-2015廣州國(guó)際管材展－中國(guó)展出效果最好的管材展-巨浪展覽-The 16th China(Guangzhou)Int''l
Tube&Pipe Expo
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