According to a filing with the Securities and Exchange Commission, the price of the transaction is estimated between $15 million and $16 million. The transaction will exclude Marcegaglia USA’s galvanized product and ornamental tubing products.
“The prospect of bringing together the capabilities of Bristol Metals and Marcegaglia’s U.S. stainless steel business is very exciting,” said Craig Bram, president and CEO of Synalloy Corp., in the filing. “Mr. Antonio Marcegaglia and I have been working diligently on this transaction and look forward to closing in the coming months.”
Marcegaglia USA is a subsidiary of Marcegaglia Group, which is headquartered in northern Italy. In 2015, the global company produced 5.4 million tons of steel processing products, according to the company’s website.
“This deal fits well in the Marcegaglia Group portfolio strategy of focusing more on the most sizeable assets in Europe, while offering an employment opportunity to our employees with a larger player in the North American stainless steel pipe industry,” said Marco Costi, international activities supervisor of the Marcegaglia Group, in the release.
The Munhall, Pa. facility employs nearly 130 and has an output of 60,000 tons of finished product at its 300,000-square-foot plant.