SOURCE: The Transition Companies

The Transition Companies

September 11, 2012 09:01 ET

Synalloy Corporation Acquires Palmer of Texas

DALLAS, TX--(Marketwire - Sep 11, 2012) - The Transition Companies, LLC ("TTC") is pleased to announce the sale of Lee-Var Inc. dba Palmer of Texas ("Palmer") to Synalloy Corporation (NASDAQ: SYNL).

TTC acted as Palmer's sole M&A advisor for this transaction. The purchase agreements were executed on August 13, 2012 and the transaction closed August 22, 2012.

Headquartered in Andrews, Texas, Palmer's business is focused on manufacturing low pressure fiberglass and steel storage tanks used primarily in the oil industry. Palmer, originally founded in 1979, employs approximately 140 people and operates from a 19 acre campus with over 100,000 square feet of office and production space.

Palmer is strategically located in the heart of the Permian Basin of west Texas. From this location, Palmer also serves other liquid-rich shale areas including the Anadarko Basin, Eagle Ford Shale and the Barnett Shale. Palmer has a second location in Orange, Texas to serve the international market.

"This is the perfect example of an accretive transaction," said Mike Ryan, Executive Vice President of TTC. "It will have an immediate, positive impact on Synalloy's earnings and stock price."

Synalloy Corporation, a publicly traded company listed on the Nasdaq (SNYL), is headquartered in Spartanburg, SC. It is a producer and fabricator of stainless steel and carbon pipe and piping systems and a producer of specialty chemicals. Synalloy is in a strong financial position and poised for organic growth and growth through acquisitions. Synalloy and its affiliates currently employ over 440 people with operations in Tennessee, Georgia and Arkansas.

John Illes, Managing Director at TTC, commented, "With this transaction, TTC provided the sellers with a high quality liquidity event that makes Palmer part of a world class team for accelerated growth."

The Transition Companies, LLC is a leading Mergers and Acquisitions ("M&A") firm that specializes in maximizing the enterprise value received by owners when selling their privately-held companies. TTC also provides Business Optimization consulting services for companies that want to improve their performance and earnings in the short-term, while increasing their market value for a future sale. Tracing its roots back to 1988, TTC is headquartered in Dallas, TX, and has offices throughout the United States and Canada.

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