Business
Synalloy Acquires Leading Specialty Chemicals Contract Manufacturer DanChem
– Acquisition Enhances Chemicals Management Team, Accelerates Product Development Capabilities, and Provides Entrance into New End-Markets and Applications –
About this update from Ascent Industries Co.
[{"type":"text","content":"\n– Acquisition Enhances Chemicals Management Team, Accelerates Product Development Capabilities, and Provides Entrance into New End-Markets and Applications –\n\n– Synalloy Chemicals is One of the Largest Specialty Chemical Contract Manufacturers in the U.S. with Plans to Significantly Scale its Platform and Accelerate Growth –\n\n RICHMOND, Va.--(BUSINESS WIRE)--\n\nSynalloy Corporation (Nasdaq: SYNL) (“Synalloy” or the “Company”), an industrials company focused on the production and distribution of piping, tubing and specialty chemicals, has acquired DanChem to accelerate product development capabilities and provide entrance into new end-markets and applications.\n\nDanChem is a leading, full-service specialty chemicals contract manufacturing organization with three production plants located on an owned 55-acre campus in Danville, Virginia. The DanChem facility is particularly unique, boasting the largest fleet of horizontal reactors in the industry and producing a broad array of diversified products. DanChem’s exceptional team serves a variety of diverse and attractive end markets, resulting in a stable customer base that consists of notable blue-chip companies and a high rate of recurring revenue throughout its 61-year history.\n\nUnder the terms of the agreement, Synalloy acquired DanChem for $32.950 million, which was funded by the Company’s existing credit facility.\n\nIn 2021, DanChem is expected to generate approximately $30 million in revenue with an approximate 18% adjusted EBITDA margin. DanChem brings to Synalloy over 120 direct personnel across its three production plants, and the company’s management team will continue to serve in current and expanded roles to further accelerate the growth of Synalloy Chemicals. The acquisition closed on October 22nd.\n\nStrategic Rationale:\n\n\nAcceleration of Product Development Capabilities – DanChem brings leading engineering and process development capabilities with a demonstrated track record of rapidly developing products for commercialization.\n\n\n\nExpansion of Process Offerings – DanChem’s production plants and horizontal reactors drastically accelerate the long-term investment plans of Synalloy Chemicals, providing differentiated assets, rail access and meaningful site acreage for continued expansion.\n\n\n\nLarger Presence in Target End-Markets and Applications – Da...