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Synalloy buys Marcegaglia USA's galvanized tube operations for US$10M

Synalloy Corp. unit Bristol Metals LLC closed the acquisition of Marcegaglia USA Inc.'s galvanized tube operations for US$10.0 million, the company said July 2.

The transaction primarily covers the galvanized tube manufacturing equipment and inventory assets of the business.

Additionally, Store Capital completed the purchase of Marcegaglia USA's facility in Munhall, Pa., where Bristol Metals has its stainless steel and galvanized tube operations.

Synalloy entered into a long-term lease agreement with Store Capital on terms and conditions consistent with a master lease executed in 2016. Synalloy will sublease the Pennsylvania facility to Bristol Metals.

Synalloy, meanwhile, announced the refinancing and increase of its asset-based credit facility with Branch Banking and Trust Co. from US$65.0 million to US$80.0 million.

The facility will be used to fund the Marcegaglia acquisition and for working capital and future acquisitions.

"We have identified numerous growth opportunities for both galvanized and ornamental stainless products and will be investing in several capital projects to further enhance our throughput," Synalloy President and CEO Craig Bram said.

Bram added that by the end of the year, revenue for the galvanized and ornamental stainless business is expected to be at an annual run rate of more than US$50 million.