logo
Share SHARE
FONT-SIZE Plus   Neg

Synalloy To Buy Palmer Of Texas

Synalloy Corp. (SYNL) said Monday that it has entered into an agreement to buy Palmer of Texas, a manufacturer of liquid storage solutions and separation equipment for the petroleum, municipal water, wastewater, chemical and food industries, in an all cash deal valued at $25.575 million, plus working capital and fixed asset adjustments at and after closing.

Palmer shareholders will also have the ability to receive earn-out payments ranging from $2.5 million to $10.5 million if the business unit achieves targeted levels of EBITDA over a three year period following closing; and Synalloy will have the ability to claw-back portions of the purchase price over a two year period following closing if EBITDA falls below baseline levels.

Synalloy said it plans to fund the purchase price through an increase in its existing credit facility and new long-term debt in the amount of about $22.5 million.

Although Synalloy has obtained a commitment from a bank for this funding, the loan has not yet closed, and closing will be subject to Synalloy completing and finalizing the acquisition of Palmer.

The deal is expected to close by August 25.

Palmer's primary facility is in Andrews, Texas. It 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.

Synalloy expects the deal to be immediately accretive to its earnings. At Palmer's current level of revenues, Synalloy is projecting a contribution of $0.30 per share to its annual earnings.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Xiaomi Corp., nicknamed the "Apple of China" is planning to launch laptops, a report by Bloomberg said. The Chinese brand has been pausing a direct challenge to major smart phone brands in Asian markets in the recent years. It has planned to win over China, India and Brazil markets those together would account for one third of the worldwide sales. Value-priced fashion apparel and accessories retailer Cato Corp. (CATO) Thursday announced a four percent increase in comparable store sales for August. Sales were for the four week period was up five percent to $67 percent from $63.6 million last year. For the thirty weeks ended August 29, the... Simple, uncluttered, colorful and friendly. That's how Google describes its new logo. The new typeface is sans-serif and without any shadow or embossing, unlike its earlier logos. It has given blue, red, yellow and green to its letters. The "e" is slightly tilted and stylized. On its browser tabs, it has replaced the lower case blue colored "g" with an upper case "G" in four colors.
comments powered by Disqus
RELATED NEWS
Trade SYNL now with 
Follow RTT