Aug 16 2007
Samuel Manu-Tech Inc. announced that it has acquired Northland Stainless, Inc. ("Northland"), a recognized leader in the design, engineering, manufacturing and supply of stainless steel pressure vessels, tank heads and components primarily to the ethanol, pharmaceutical and chemical industries in North America.
This strategic acquisition complements Samuel's existing steel pressure vessel operations, including its Silvan Industries division in Marinette, Wisconsin and its Steel Fab division in Abingdon, Virginia. The purchase allows the company to expand its high quality product range and to further grow its market share in the pressure vessel industry. Northland has a long standing reputation in the steel pressure vessel industry and more recently, has enjoyed considerable growth in the ethanol market. Annual sales of Northland approximated U.S. $17 million in the fiscal year ended June 30, 2007. Northland was founded in 1973 and is based in Tomahawk, Wisconsin, employing approximately 80 people.
The transaction is structured as a 100% stock purchase. The purchase price is U.S. $8.75 million subject to certain adjustments for working capital items. Management expects this acquisition to be accretive to earnings in its first full year of operations. Funding for the acquisition came from Samuel's existing revolving credit facilities.
"We are excited to welcome Northland Stainless, their management and employees to our group of companies", commented Samuel's Chairman and Chief Executive Officer, Mark Samuel, "We consider them to be a positive addition to our steel pressure vessel group within our growing family of Metal Processing businesses".