Industry News

Synalloy Enters Agreement to Sell its Dye Business

Published on 2005-01-14. Author : SpecialChem

SPARTANBURG, S.C. -- Synalloy Corporation (Nasdaq: SYNL - News), a producer of specialty chemicals, dyes and pigments, stainless steel pipe, vessels and process equipment, announces that it has entered into an agreement with Greenville Colorants, LLC to sell certain of the assets associated with its Blackman Uhler LLC dye business.

The transaction, which is scheduled to close by the end of January 2005, involves the sale of the dye business inventory, certain manufacturing equipment, and certain intangibles used in connection with the business. The purchase price is $4,950,000 with $4.1 million being payable in cash on closing and the balance of $850,000 being payable over time based on the operations of the purchaser. With certain limited exceptions, Synalloy and its affiliates agree not to compete with the purchaser in the manufacture and sale of dyestuffs. Synalloy will toll product for the purchaser for limited periods following the closing. The dyestuff business being sold accounts for approximately $22,000,000 in sales in 2004 and was not profitable.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

The statements contained in this release that are not historical facts may be forward looking statements. The forward looking statements are subject to certain risks and uncertainties, including without limitation those identified below, which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The following factors could cause actual results to differ materially from historical results or those anticipated; adverse economic conditions, the impact of competitive products and pricing, product demand and acceptance risks, raw material and other increased costs, customer delays or difficulties in the production of products, and other risks detailed from time to time in Synalloy's Securities and Exchange Commission filings. Synalloy Corporation assumes no obligation to update the information included in this release.

Source: Synalloy Corporation

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