Worthington Industries, Inc.
) Pressure Cylinders division has bought steel and fiberglass
tanks maker Palmer Mfg. & Tank, Inc. The acquisition will
boost Worthington's foothold in the oil and gas industry.
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Garden City, Kan.-based privately-owned Palmer makes steel and
fiberglass tanks and processing equipment for the oil and gas
industry. It also offers custom manufactured fiberglass tanks for
agricultural, chemical and general industrial uses.
Palmer, which has annual sales of $70 million, has 184,000 square
feet of manufacturing space at its Garden City headquarters. It
is strategically located to cater the Bakken formation in N.
Dak., the Uinta and Denver-Julesburg basins as well as several of
the shale formations in northern Texas.
Worthington remains committed to expand its capabilities in the
energy market. It continues to explore additional opportunities
for growth both organically and through new businesses. The
Palmer acquisition, which is in sync with this strategy,
reinforces Worthington's position in the energy space and
provides opportunity to expand geographically in the oil and gas
industry. The addition of Palmer's capabilities is expected to
drive growth in the pressure cylinders business and deliver
meaningful commercial synergies.
Worthington, which has annual sales of $2.5 billion, is engaged
in processing steel for application in the automotive,
construction, hardware, agricultural, aerospace and other
industries. The company makes a range of processed steel items,
pressure cylinders (including oxygen and helium tanks and hand
torches), metal framing products, racks, shipping pallets,
airbrake tanks and consumer products.
Worthington, in Mar 2013, posted mixed third-quarter fiscal 2013
(ended Feb 28, 2013) results. Earnings of 52 cents a share beat
the Zacks Consensus Estimate by 3 cents. Profit jumped 43% year
over year, aided by healthy results from the pressure cylinders
business. Sales inched up 1% year over year to $619.5 million but
missed the Zacks Consensus Estimate of $677 million.
Worthington achieved, last month, the "Partner-Level Supplier"
recognition for 2012 in the John Deere achieving excellence
program. It is the highest supplier rating of
Deere & Company
Worthington currently retains a Zacks Rank #2 (Buy).
Other metal processors worth considering are
). While NSK holds a Zacks Rank #1 (Strong Buy), Kaydon retains a
Zacks Rank #2 (Buy).