Synalloy Corp. plans to acquire stainless steel pipe and tube operations
Richmond-based Synalloy Corp. plans to acquire the stainless-steel pipe and tube operations of Pennsylvania-based Marcegaglia USA.
The deal, which will be worth $15 million to $16 million, will involve Synalloy’s subsidiary Bristol Metals LLC. The transaction is expected to close by March 1.
“It has been Bristol Metals’ ultimate goal to become the pre-eminent manufacturer of stainless-steel pipe and tube in North America,” Kyle Pennington, president of Synalloy Metals, said in a statement. “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 its heavy wall operation and the addition of Marcegaglia’s laser mill capabilities, our company will be well positioned to support the North American pipe and tube market for many years to come.”
Marcegaglia USA is a subsidiary of Mantova, Italy-based Marcegaglia.
The agreement will be structured as an asset purchase and will not include galvanized and ornamental tubing products.
Synalloy is involved in a number of business activities, including the production of stainless-steel pipe, fiberglass, steel storage tanks and specialty chemicals and the distribution of seamless carbon pipe and tubing.
The company has been in business since 1945 and employs more than 450 people in operations in Tennessee, Georgia, Texas and South Carolina in addition to Virginia.