Synalloy Acquires Stainless Pipe Operations of Marcegaglia USA
This deal stengthens their Bristol Metals subsidiary as a leading manufacturer of stainless steel pipe and tube in North America.
Posted: December 15, 2016
Synalloy Corporation (Richmond, VA) has announced that, through their subsidiary Bristol Metals, LLC (BRISMET; Bristol, TN), they have signed a definitive agreement to acquire the Stainless Steel Pipe and Tube operations of Marcegaglia USA (Munhall, PA). The parties expect the transaction to close on or by March 1, 2017, in an agreement that will be structured as an asset purchase and will exclude galvanized product and ornamental tubing products. The purchase price for the transaction, which excludes real estate and certain other assets, is expected to range between $15 million and $16 million.
“The prospect of bringing together the capabilities of Bristol Metals and Marcegaglia’s U.S. stainless steel business is very exciting,” said Craig Bram, the president and chief executive officer of Synalloy Corporation. “Antonio Marcegaglia and I have been working diligently on this transaction and look forward to closing in the coming months.” Marco Costi, the international activities supervisor of Marcegaglia Group, added, “This deal fits well in our portfolio strategy of focusing more on the most sizeable assets in Europe, while offering an employment opportunity to our employees with a larger player in the North American stainless steel pipe industry.”
“It has been Bristol Metals’ ultimate goal to become the preeminent manufacturer of stainless steel pipe and tube in North America,” noted Kyle Pennington, the president of Synalloy Metals. “We will work with the team at Marcegaglia’s Munhall, PA, facility to drive continued improvements in our core initiatives, with an emphasis on customer service. With Bristol Metals’ recent investment in their heavy wall operation and the addition of Marcegaglia’s laser mill capabilities, we will be well positioned to support the North American pipe and tube market for many years to come.”
Synalloy is 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, specialty chemicals, and the master distribution of seamless carbon pipe and tubing.
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