Synalloy Corporation, a producer of stainless steel pipe, fabricator of stainless and carbon steel piping systems, and producer of specialty chemicals, announced Monday that it has entered into an agreement to acquire Palmer of Texas, a leading manufacturer of liquid storage solutions and separation equipment for the petroleum, municipal water, wastewater, chemical and food industries.
The all-cash transaction is valued at $25,575,000, 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 $2,500,000 to $10,500,000 if the business unit achieves targeted levels of EBITDA over a three year period following closing; Synalloy will also have the ability to claw-back portions of the purchase price over a two year period following closing if EBITDA falls below baseline levels. The transaction is expected to close by August 25, 2012.