USA: Worthington Industries Buys Palmer Mfg. & Tank Business

Worthington Industries, Inc. announced that its Pressure Cylinders segment has acquired Palmer Mfg. & Tank, Inc. business, a manufacturer of steel and fiberglass tanks and processing equipment for the oil and gas industry, and custom manufactured fiberglass tanks for agricultural, chemical and general industrial applications.

“We are very excited to add the capabilities of Palmer to further the growth in Pressure Cylinders,” said Andrew Billman, president of the business segment. “The Palmer business strengthens our energy position and fits our strategy to geographically expand in the oil and gas industry. When combined with our alternative fuel cylinder business and our entry into the cryogenics arena, we are broadening our energy product offerings.” Billman added, “This strategy allows us to participate in the expanding North American oil and gas markets, as well as global growth in alternatives for gas and diesel to power vehicles, which include compressed natural gas (CNG), liquefied natural gas (LNG), autogas (propane) and hydrogen.”

Palmer manufactures both steel and fiberglass tanks in a comprehensive range of sizes and is strategically located to serve the Bakken formation in North Dakota, the Uinta and Denver-Julesburg basins, along with several of the shale formations in northern Texas. Palmer was founded in 1971 and has 184,000 square feet of manufacturing space at the Garden City headquarters. The privately owned company generated sales of $70 million in its fiscal year ended June 30, 2012.

“Worthington continues to pursue new markets that are accelerating our growth,” said John McConnell, Chairman and CEO. “The acquisition of the Palmer business, together with our recent acquisition of Westerman, gives us a strong footprint in the oil and gas industry. This high-value added manufacturing business complements our existing capabilities and should generate strong commercial synergies.”

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LNG World News Staff, April 11, 2013; Image: Palmer