US-based tube producer Synalloy Corporation has announced that its subsidiary Bristol Metals, LLC has closed the purchase of Italian steel processor Marcegaglia’s galvanized tube operations in Munhall, Pennsylvania. The agreement for the purchase was signed in May this year.
Synalloy has also announced the refinance and increase of its asset based (ABL) credit facility with its bank, Branch Banking and Trust Company (BB&T), from $65 million to $80 million. The ABL will be used to finance the Marcegaglia galvanized acquisition, for working capital needs and to fund future acquisitions.
“We expect the addition of this business to be as incrementally positive to Bristol Metals’ financial results as was our initial transaction with Marcegaglia. 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. By the end of 2018, revenue for the galvanized and ornamental stainless business is projected to be at an annual run rate greater than $50 million,” stated Craig C. Bram, president and CEO of Synalloy Corporation.