|
Worthington Industries Acquires Westerman Companies
COLUMBUS, OH, Sep 17, 2012 (MARKETWIRE via COMTEX) --
Worthington Industries, Inc. (NYSE: WOR) announced today that its
Pressure Cylinders segment has acquired the Westerman Companies, a
manufacturer of tanks and pressure vessels for the oil and gas,
nuclear and marine markets. The purchase price was $70 million, of
which approximately $6 million went to pay down Westerman debt.
Westerman is a leading manufacturer of highly technical products for
global energy markets, including oil and gas and nuclear, where its
energy products are used for a broad variety of exploration, recovery
and production purposes. Westerman's marine products are used in
shipyard lift systems for large, sea-going vessels. Westerman also
leverages its energy and marine segment competencies to manufacture
pressure vessels, atmospheric tanks, controls and various custom
machined components for other industrial end markets.
"This acquisition fits our growth strategy well as it increases our
participation in the global energy and alternative fuels markets, and
provides diversification in the marine and industrial markets," said
Worthington Industries Chairman and CEO John McConnell. "Westerman
has an impressive customer base, including many companies active in
the drilling of the Utica and Marcellus shale formations. It also
positions us to support the North American energy production
revival."
Westerman was founded and is headquartered in Bremen, Ohio where it
operates a manufacturing facility and has another facility in
Wooster, Ohio. Westerman has approximately 220 employees and
generated sales for its fiscal year ended May 31, 2012 of $71.8
million. Westerman is the largest and oldest supplier of oil and gas
separators, production units and related wellhead equipment east of
the Mississippi River. Westerman is the world's largest producer of
enriched uranium hexafluoride (UF6) storage and transportation
cylinders for the nuclear industry, and the only North American
manufacturer.
"This acquisition broadens our product offering and market reach, yet
fits well within our core competency of tank manufacturing for highly
technical, regulated markets," said Andy Billman, president of the
Worthington Cylinders segment. "With many years of tank manufacturing
experience between the two companies, we are excited to capture
manufacturing and commercial synergies."
About Worthington Industries
Worthington Industries is a leading
diversified metals manufacturing company with 2012 fiscal year sales
of $2.5 billion. The Columbus, Ohio based company is North America's
premier value-added steel processor and a leader in manufactured
pressure cylinders; custom-engineered open and enclosed cabs and
operator stations for heavy mobile equipment; framing systems for
mid-rise buildings; steel pallets and racks; and through joint
ventures, suspension grid systems for concealed and lay-in panel
ceilings, current and past model automotive service stampings; laser
welded blanks, and light gauge steel framing for commercial and
residential construction. Worthington Industries employs
approximately 10,000 people and operates 80 facilities in 12
countries.
Worthington Cylinders is the world's leading global manufacturer of
pressure cylinders, delivering products and value-added services to
its customers designed to exceed their expectations in quality,
service and value. Worthington Cylinders offers the most complete
line of pressure cylinders in the industry, including storage of
liquefied petroleum, refrigerant, oxygen and industrial gases.
BernzOmatic (R), Balloon Time(R) and Worthington(TM) products are
available at retailers nationwide and provide consumers products for
grilling, party planning, outdoor leisure activities and home repair.
Safe Harbor Statement
The Company wishes to take advantage of the Safe Harbor provisions
included in the Private Securities Litigation Reform Act of 1995 (the
"Act"). Statements by the Company relating to the expected benefits
of the acquisition including the expectations for accretiveness,
synergies and growth; expected growth of the pressure cylinder
business; increases to product lines and participation in markets;
opportunities to participate in certain markets; and other
non-historical matters constitute "forward-looking statements" within
the meaning of the Act. Because they are based on beliefs, estimates
and assumptions, forward-looking statements are inherently subject to
risks and uncertainties that could cause actual results to differ
materially from those projected. Any number of factors could affect
actual results, including, without limitation, the possibility that
the costs or difficulties related to the integration of the business
acquired are greater than expected; the ability to maintain
relationships with customers of the acquired business; product demand
and pricing, changes in product mix and market acceptance of
products; fluctuations in pricing, quality or availability of raw
materials, supplies, utilities and other items required by
operations; the ability to realize price increases, cost savings and
operational efficiencies on a timely basis; capacity levels and
efficiencies within facilities, within major markets and within the
industry as a whole; financial difficulties of customers, suppliers,
joint venture partners and others with whom the Company does
business; the effect of national, regional and worldwide economic
conditions generally and within major product markets, including a
prolonged or substantial economic downturn; the effect of adverse
weather on facilities and shipping operations; changes in customer
spending patterns and supplier choices; acts of war and terrorist
activities; the ability to improve processes and business practices
to keep pace with the economic, competitive and technological
environment; deviation of actual results from estimates and/or
assumptions used by the Company; the level of import and import
prices in the Company's markets; the impact of governmental
regulations, both in the United States and abroad; and other risks
described from time to time in filings with the United States
Securities and Exchange Commission.
CONTACTS:
Cathy M. Lyttle
VP, Corporate Communications and Investor Relations
Phone: (614) 438-3077
E-mail: Email Contact
Sonya L. Higginbotham
Director, Corporate Communications
Phone: (614) 438-7391
E-mail: Email Contact
SOURCE: Worthington Industries, Inc.
http://www2.marketwire.com/mw/emailprcntct id=AF45E2F9E23810DA
http://www2.marketwire.com/mw/emailprcntct id=8AC93C8671D5ACF5
[ InfoTech Spotlight's Homepage ]
|
