Worthington Industries Acquires Amtrol
June 02 2017 - 9:01AM
Worthington Industries (NYSE:WOR) announced today it has acquired
Amtrol, a leading manufacturer of pressure cylinders and water
system tanks. The purchase price was approximately $283
million.
“Amtrol is a great addition to our Company and I am pleased to
welcome Amtrol employees,” said John McConnell, Chairman and CEO of
Worthington Industries. “This acquisition aligns well with
our core competencies in Pressure Cylinders and expands our product
offerings to our wholesale and retail customers.” McConnell
added, “Amtrol will also expand and enhance our growing culture of
innovation and the development of new products.”
Amtrol strengthens Worthington’s industrial gas and consumer
products businesses and complements Worthington’s refrigerant
cylinder manufacturing capabilities. The acquisition combines
two leaders in the U.S. and European LP Gas business, and adds
water and well tank product lines to Worthington’s wholesale and
retail consumer products portfolio. Amtrol and Worthington’s
manufacturing operations share many similarities and have
significant overlap in distribution channels, providing
opportunities to enhance the value proposition to
customers.
Operations in Rhode Island, Maryland and Kentucky produce
refrigerant gas cylinders and ASME products for commercial and
industrial applications. Amtrol is also a leader in the
design, manufacturing and distribution of residential well water
and expansion tanks, which are sold through large plumbing,
heating, ventilation and air conditioning (PHVAC) wholesalers and
retailers.
Amtrol-Alfa, with manufacturing operations in Portugal, is a
leading liquified propane gas (LPG) and industrial gas cylinder
producer in Europe. Products from Portugal are sold to
numerous LPG marketers and wholesalers throughout Europe and the
Middle East.
In calendar year 2016, Amtrol had approximately $248 million in
net sales and adjusted EBITDA of $38.5 million.
“We are excited to add the market leader in well water and
expansion tanks to our Pressure Cylinders business,” said Geoff
Gilmore, president of Worthington’s Pressure Cylinders
business. “Amtrol products have great brand recognition and
the business complements ours nicely. We are combining two
powerful businesses with robust customer-focused offerings.”
Gilmore added, “Acquiring Amtrol also allows us to immediately
expand our footprint internationally as Amtrol-Alfa is a leading
cylinder manufacturer in the European market.”
About Amtrol
Amtrol was founded in 1946 and has manufacturing facilities in
West Warwick, R.I., Baltimore, MD., Paducah, KY., and Guimaraẽs,
Portugal. Recently celebrating its 70th anniversary, AMTROL
has a long tradition of product innovation beginning with the
invention of the pre-pressurized expansion tank in 1954.
Amtrol followed this with the first pre-pressurized well tank,
refrigerant gas cylinders, indirect hot water makers and
pre-pressurized thermal expansion tanks. More recently,
Amtrol introduced the first composite metal LP tank, the XLite®
cylinder and the high pressure Genie®. Amtrol is considered a
world leader in the design, manufacture and distribution of high
quality products for a wide variety of applications.
About Worthington Industries
Worthington Industries is a leading global diversified metals
manufacturing company with 2016 fiscal year sales of $2.8 billion.
Headquartered in Columbus, Ohio, Worthington is North America's
premier value-added steel processor providing customers with wide
ranging capabilities, products and services for a variety of
markets including automotive, construction and agriculture; a
global leader in manufacturing pressure cylinders for industrial
gas and cryogenic applications, CNG and LNG storage, Cryogenic
transportation and storage and alternative fuel tanks, oil and gas
equipment, and consumer products for camping, grilling, hand torch
solutions and helium balloon kits; and a manufacturer of operator
cabs for heavy mobile industrial equipment; laser welded blanks for
light weighting applications; automotive racking solutions; and
through joint ventures, complete ceiling grid solutions; automotive
tooling and stampings; and steel framing for commercial
construction. Worthington employs approximately 11,000 people and
operates 84 facilities in 11 countries.
Safe Harbor StatementThe 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 its ability to increase market
participation, expand and integrate capacity, increase efficiencies
and reduce lead time, achieve growth in general and in specific
markets, and other statements which are not historical information
constitute "forward looking statements" within the meaning of the
Act. All forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ from those
projected. Factors that could cause actual results to differ
materially include the overall success of, and the ability to
integrate the newly-acquired Amtrol companies and achieve synergies
and other expected benefits, and, risks described from time to time
in the Company's filings with the Securities and Exchange
Commission.
CATHY M. LYTTLE
VP, CORPORATE COMMUNICATIONS
AND INVESTOR RELATIONS
614.438.3077 | cathy.lyttle@WorthingtonIndustries.com
SONYA L. HIGGINBOTHAM
DIRECTOR, CORPORATE COMMUNICATIONS
614.438.7391 | sonya.higginbotham@worthingtonindustries.com
200 Old Wilson Bridge Rd. | Columbus, Ohio 43085
WorthingtonIndustries.com
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