CHICAGO Worthington 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 applications.
"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 Worthington.
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).