US-based tube producer Synalloy Corporation has announced that it has entered into an agreement to purchase Italian steel processor Marcegaglia’s galvanized tube operations in Munhall, Pennsylvania, for a total consideration of $20 million. The closing of the transaction is subject to customary due diligence and other closing conditions and is scheduled for the end of June this year.
According to the agreement, Store Capital, a real estate investment trust (REIT) company in the US, will fund the acquisition and own the galvanized tube plant, and subsequently Synalloy’s subsidiary Bristol Metals will lease the property back from Store Capital.
Craig Bram, Synalloy’s president and CEO, stated that this acquisition supplements the company’s ability to fulfill domestic demand as a result of the Section 232 steel tariffs.