Worthington Industries to Purchase Stake in ARITAS
January 06 2014 - 4:55PM
Marketwired
Worthington Industries to Purchase Stake in ARITAS
Leading European LNG and Cyrogenic Company
COLUMBUS, OH--(Marketwired - Jan 6, 2014) - Worthington
Industries, Inc. (NYSE: WOR) announced that its Pressure Cylinders
segment has signed an agreement to acquire a 75% stake in ARITAS,
one of Europe's leading LNG (liquefied natural gas) and cryogenic
technology companies offering a broad portfolio of LNG products,
cryogenic vessels, systems and services. Located in Istanbul,
Turkey, ARITAS employs nearly 300 people and generated sales of
approximately $40 million for its fiscal year ending Dec. 31, 2013.
The transaction is awaiting Turkish government approval, which is
expected to be completed later this month.
ARITAS' LNG products account for a majority of sales. For nearly
a decade, ARITAS has been building and servicing the virtual LNG
pipeline in Turkey via LNG transport trailers, LNG ISO containers,
LNG bulk tanks and LNG satellite stations for re-gasification.
ARITAS is also an emerging global leader in LNG fueling systems,
including those for natural gas powered marine vessels. ARITAS'
product portfolio includes an array of industrial gas products
including engineered tanks holding up to 500,000 liters, transport
trailers, bulk tanks and microbulk storage, which will be
complemented by Worthington's home grown liquid cylinder
offering.
"We are very excited to add ARITAS' LNG and cryogenics
capabilities and reputation for quality. We believe they will
dramatically increase our ability to grow our LNG and cryogenics
businesses quickly and globally," said John McConnell, Chairman and
CEO of Worthington Industries.
"ARITAS' experience and strong LNG product lineup fit our
strategy to expand our footprint in energy products, as well as
products for alternative fuels to power vehicles," said Andrew
Billman, President of the Pressure Cylinders business segment.
"ARITAS' technology is easily adaptable to markets it is currently
not servicing, including the Americas and Western Europe.
Thoughtful integration with our global sales force will help us
drive strong commercial synergies."
Today, ARITAS operates a 270,000 square foot manufacturing
facility in Istanbul and is committed to build a new
state-of-the-art facility approximately 125 miles away in Bandirma.
The new facility will ultimately provide a two to three times
capacity increase with opportunity for future expansion and is
located near a large Turkish port that serves some of the world's
best shipping routes, enhancing the accessibility of target
markets.
About Worthington Industries Worthington Industries is a leading
diversified metals manufacturing company with 2013 fiscal year
sales of $2.6 billion. The Columbus, Ohio based company is North
America's premier value-added steel processor and a leader in
manufactured metal products, such as propane, oxygen, refrigerant
and industrial cylinders, hand torches, camping cylinders, scuba
tanks, compressed natural gas storage cylinders, industrial
cryogenics tanks, helium balloon kits and exploration, recovery and
production tanks for global energy markets; custom-engineered open
and enclosed cabs and operator stations for heavy mobile equipment;
laser welded blanks; 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 and
light gauge steel framing for commercial and residential
construction. Worthington employs approximately 10,000 people and
operates 83 facilities in 12 countries.
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 LNG, cryogenics and other pressure cylinders
businesses; the adaptability of technology for other markets;
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 adapt technology to other markets, the
ability to maintain relationships with customers of the acquired
business; the effect of conditions in Turkish, national and
worldwide financial markets; product demand and pricing; changes in
product mix, product substitution and market acceptance of the
Company's products; fluctuations in the 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
product 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 Turkish,
national, regional and worldwide economic conditions generally and
within major product markets, including a prolonged or substantial
economic downturn; the effect of disruption in the business of
suppliers, customers, facilities and shipping operations due to
adverse weather, casualty events, equipment breakdowns, acts of war
or terrorist activities or other causes; changes in customer
demand, inventories, spending patterns and supplier choices; 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; the risk of doing business in Turkey
or other foreign countries including the potential of adverse
changes in the political climate, terrorists activity or civil
unrest, currency fluctuations, differing cultures and local
business partners 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 200 Old Wilson Bridge Rd.
Columbus, Ohio 43085 WorthingtonIndustries.com
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