Worthington Industries Acquires Westerman Companies for $70M
Worthington Industries (NYSE: WOR) announced today that its Pressure Cylinders segment has acquired the Westerman Companies, a manufacturer of tanks and pressure vessels for the oil and gas, nuclear and marine markets. The purchase price was $70 million, of which approximately $6 million went to pay down Westerman debt.
Westerman is a leading manufacturer of highly technical products for global energy markets, including oil and gas and nuclear, where its energy products are used for a broad variety of exploration, recovery and production purposes. Westerman's marine products are used in shipyard lift systems for large, sea-going vessels. Westerman also leverages its energy and marine segment competencies to manufacture pressure vessels, atmospheric tanks, controls and various custom machined components for other industrial end markets.
"This acquisition fits our growth strategy well as it increases our participation in the global energy and alternative fuels markets, and provides diversification in the marine and industrial markets," said Worthington Industries Chairman and CEO John McConnell. "Westerman has an impressive customer base, including many companies active in the drilling of the Utica and Marcellus shale formations. It also positions us to support the North American energy production revival."
Westerman was founded and is headquartered in Bremen, Ohio where it operates a manufacturing facility and has another facility in Wooster, Ohio. Westerman has approximately 220 employees and generated sales for its fiscal year ended May 31, 2012 of $71.8 million. Westerman is the largest and oldest supplier of oil and gas separators, production units and related wellhead equipment east of the Mississippi River. Westerman is the world's largest producer of enriched uranium hexafluoride (UF6) storage and transportation cylinders for the nuclear industry, and the only North American manufacturer.
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