Industries Inc.s pressure cylinder unit has acquired
Palmer Manufacturing & Tank Inc. for $113.5 million.
Garden City, Kan.-based Palmer
makes steel and fiberglass tanks and processing equipment for
the oil and gas industry, as well as custom fiberglass tanks
for agricultural, chemical and general industrial
"The Palmer business strengthens
our energy position and fits our strategy to geographically
expand in the oil and gas industry," Andy Billman, president of
Worthingtons cylinders segment, said in a statement.
"When combined with our alternative fuel cylinder business and
our entry into the cryogenics arena, we are broadening our
energy product offerings."
Palmer is strategically located
to service the Bakken shale in North Dakota, the Uinta basin in
Utah, the Denver-Julesburg basin centered in eastern Colorado,
and several shale formations in northern Texas, according to
Palmer reported sales of $70
million in its fiscal year ended June 30, 2012. The company has
about 200 employees.
"Worthington continues to pursue
new markets that are accelerating our growth," chairman and
chief executive officer John McConnell said. The Palmer
acquisition, paired with the $70-million purchase last
September of Westerman Cos., Bremen, Ohio, "gives us a strong
footprint in the oil and gas industry."
Worthington recently said its
pressure cylinder units employed capital now outpaces
that of its steel segment (
amm.com, March 22).