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Wednesday 30 May 2018

Synalloy to buy Marcegaglia's galvanized tube biz, property in Munhall




Synalloy Corporation (SYNL) has entered into a purchase and sale agreement to purchase Marcegaglia’s real property in Munhall, Pennsylvania for $10.0 million.
Marcegaglia is an Italian leading player and the largest independent global operator in the steel processing industry.
At or prior to closing, Synalloy intends to designate title to the property to Store Capital who will fund the acquisition and own the property, and subsequently, Synalloy’s subsidiary, Bristol Metals, will lease the property back from Store Capital, on terms and conditions consistent with the Synalloy’s current master lease arrangement with Store Capital.
Upon closing of the purchase-leaseback, Synalloy will enter into an absolute triple net lease with the Store Capital pursuant to which it will lease the Munhall location for an initial term of 20 years, with two renewal options of 10 years each.
The closing of the transaction is scheduled for the end of June 2018.
Additionally, Synalloy and Marcegaglia have agreed to simultaneously sign and close an asset purchase and sale, whereby Bristol Metals will acquire Marcegaglia’s galvanized tube operations at the Munhall location for $10.0 million.
The transaction is expected to close simultaneously with the Synalloy's purchase-leaseback of the Munhall property, with an effective date of July 1, 2018.

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