Samuel Manu-Tech Acquires Tubular Products Company
02/04/2008 - Samuel Manu-Tech acquires Tubular Products Co., a recognized leader in the design, engineering, manufacturing, and supply of laser-cut carbon steel tubing, fabricated tubular components and welded sub-assemblies.
Samuel Manu-Tech Inc. has acquired Tubular Products Co., a recognized leader in the design, engineering, manufacturing, and supply of laser-cut carbon steel tubing, fabricated tubular components and welded sub-assemblies.
Founded in 1973, Tubular Products is based in Birmingham, Ala., and employs approximately 160 people in its 150,000-square-foot facility. The company’s products are used primarily in North America for outdoor and power transmission equipment, all-terrain, automotive and other vehicles, and reusable coil carriers. In its most recently completed fiscal year ended August 30, 2007, the company’s annual sales approximated U.S. $30 million.
The transaction is structured as a 100% stock purchase. The purchase price is U.S. $33 million plus an earn-out payment, subject to certain adjustments for working capital items. Management expects this acquisition to be accretive to earnings in its first full year of operations. Funding for the acquisition came from Samuel's existing revolving credit facilities.
"We are excited to welcome Tubular Products, their management and employees to our group of companies," commented Samuel's Chairman and CEO, Mark Samuel. "We consider this to be a positive addition to our tubular products operations within our growing family of Metal Processing businesses."
According to Samuel, the acquisition complements the company's existing tube bending and welding capability at its Tube.tec operation, located in Statesville, N.C.
Samuel Manu-Tech is a leading North American industrial products and technology company producing a wide range of steel, plastic and related industrial products and services from locations in Canada, the United States and Mexico.
