Synalloy Corporation (SYNL) recently announced that its wholly-owned subsidiary, ASTI Acquisition, LLC, has signed a definitive agreement to acquire all of the assets of American Stainless Tubing, Inc. (ASTI). The parties expect the transaction to close by January 2019.
The cash purchase price for the transaction is expected to range between USD 27 and USD 28M, including ASTIâs right to receive revenue-based earn-out payments over a three year period following closing. Synalloy will sublease the facilities to ASTI Acquisition, LLC, which after closing will be re-named American Stainless Tubing, LLC.
Craig Bram, President and CEO of Synalloy Corporation said, “The prospect of bringing together the diverse stainless steel and alloy pipe and tubing capabilities of Bristol Metals with the high-end ornamental welded stainless steel tube products capabilities of ASTI in the Synalloy Metals family is very exciting. We are continuing to grow our presence in the stainless steel pipe and tube markets in North America, further filling out our product offerings and stainless steel purchasing position.â?
Maria Haughton Roberson, President of ASTI said, âOur management team has spent their careers building this business to what it is currently, and we are very proud of our company and its accomplishments. The backing of Synalloy will provide ASTI an opportunity to move up to the next level. We look forward to being part of their team as we continue to set the quality standard in stainless steel tubing.â?
