Synalloy Corp To Buy Palmer Stock

Purchase Of Lee-Var Inc, dba Palmer of Texas, for undisclosed sum.

Synalloy Corporation (SYNL), a producer and fabricator of stainless steel and carbon pipe and piping systems, and producer of specialty chemicals, announces that as previously reported on August 13, 2012, Synalloy entered into an agreement to purchase the stock of Lee-Var, Inc., dba Palmer of Texas.

On August 21, 2012, the Company closed the transaction contemplated by the Stock Purchase Agreement. The acquisition was funded through a Credit Agreement with its current bank to increase the limit of its line of credit by $5,000,000 to a maximum of $25,000,000 and extended the maturity date to August 21, 2015. The Credit Agreement also included a ten-year term loan for $22,500,000 that requires equal monthly payments of $187,500 plus interest.

In recent years, Palmer's business has been focused on providing fiberglass (FRP) and steel tanks to the oil industry. Their primary facility in Andrews, Texas, is strategically located in the heart of the Permian Basin of west Texas and also serves other liquid rich shale areas including the Anadarko Basin, Eagle Ford Shale and the Barnett Shale. Palmer also operates a temporary facility on the Sabine River in Orange, Texas, where it builds oversized FRP tanks for international customers.