Ascent Industries Announces Sale Of Specialty Pipe & Tube For $55M In An All-Cash Transaction; The Transaction Closed On December 22, 2023

Author: Benzinga Newsdesk | December 26, 2023 05:07pm

Ascent Industries Co. (NASDAQ:ACNT) ("Ascent" or the "Company"), an industrials company focused on the production and distribution of industrial tubular products and specialty chemicals, has announced the sale of the business of Specialty Pipe & Tube ("SPT") for approximately $55 million in an all-cash transaction. The transaction closed on December 22, 2023.

SPT is a leading master distributor for large diameter, hot finish seamless carbon steel pipe and tubing. Proceeds from the transaction will be used to pay down outstanding debt and for general corporate purposes. The sale greatly reduces the complexity associated with Ascent's tubular operations and allows the Ascent Tubular team to focus on its core competencies that best position the company for long-term growth.

"We are proud of achieving this value-creating outcome for Ascent shareholders. While SPT is a unique and profitable business, the inherent cyclicality in its end-markets makes it a much better fit for the private markets," said Chris Hutter, president and CEO of Ascent. "This transaction provides Ascent with the ability to dramatically reduce our debt, while providing additional available capital to pursue growth opportunities within our focused businesses under new segment leaders. We are proud of SPT's performance under our stewardship, specifically in the past three years, and believe SPT is positioned for continued success in the future."

Ascent's remaining assets within the tubular segment consist of Bristol Tubular Products, the largest domestic manufacturer of welded pipe from stainless steel and other nickel alloys, and American Stainless Tubing, a producer of premium ornamental stainless steel tubing.

Angle Advisors acted as financial advisor and Sherman and Howard acted as legal advisor to Ascent.

Posted In: ACNT