Business
Friedman Industries, Incorporated Expands With Major Acquisition of Plateplus, Inc. Operations
LONGVIEW, Texas, May 02, 2022 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (“Friedman”) (NYSE American: FRD), a Texas-based company engaged in steel
About this update from Friedman Industries Inc.
[{"type":"text","content":"LONGVIEW, Texas, May 02, 2022 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (“Friedman”) (NYSE American: FRD), a Texas-based company engaged in steel processing and distribution as well as pipe manufacturing through its division Texas Tubular Products, announced today that it has acquired two high-quality, strategically located facilities from Plateplus, Inc. (“Plateplus”), positioning Friedman as a leading North American steel service center with an expanded geographic presence, scale and processing capabilities. In addition to the facilities acquired, Friedman also purchased the steel inventory and customer relationships at two additional Plateplus locations. The parties executed an agreement related to the transaction on April 26, 2022 and closed the transaction effective at the end of business on April 30, 2022. Friedman acquired the real estate, buildings, equipment, inventory, and other assets of Plateplus’ East Chicago, IN and Granite City, IL facilities. In addition, Friedman has acquired the steel inventory and customer relationships at Plateplus’ Loudon, TN and Houston, TX facilities. Business that was historically handled at Plateplus’ Loudon and Houston locations will be transitioned to Friedman’s facilities in Decatur, AL and Sinton, TX, respectively, providing immediate and meaningful operating efficiencies and cost synergies. “Over the last several years, we have strategically invested in enhanced processing capabilities to meet virtually all customer needs, including our new stretcher leveler at our Decatur, AL facility and our new facility in Sinton, TX, that is expected to open later this year,” said Mike Taylor, President & Chief Executive Officer of Friedman. “This transaction and the processing capabilities it provides significantly enhance the strategic value of these recent investments. We are transforming our company with leading technologies and a broader geographic reach that will allow us to serve more customers with a larger portfolio of leading products. It catapults Friedman to a new level of providing quality, reliability and best-in-market product capability so we can more effectively service customers across North America.” Under the terms of the agreement, Friedman acquired the assets for $63.8 million in cash and 516,041 shares of Friedman’s common stock. Fixed assets account for approx...