Synalloy Acquires Specialty; Updates Guidance - Quick Facts

(RTTNews) - Synalloy Corp. (SYNL) announced it has acquired Specialty Pipe & Tube Inc., a master distributor of seamless carbon pipe, with a focus on heavy wall, large diameter products. The deal is valued at $31.5 million, and potential earn-out payments up to $5 million over two years should the business unit achieve targeted sales revenue. Synalloy expects the transaction to be accretive to its earnings in the first year following the closing.

Including the acquisition of Specialty, Synalloy expects 2015 total revenue in the range of $232 million, and earnings per share of $1.54. Synalloy projects that its earnings per share will increase by approximately $0.40 over 2014, with half of the increase coming from organic growth and the other half coming from the acquisition of Specialty.