Synalloy Announces Rejection of Reduced Offer from Privet Fund Management LLC
August 23 2019 - 10:00AM
Synalloy Corporation (Nasdaq: SYNL) announced today that the
Executive Committee of its Board of Directors, acting on behalf and
with the unanimous support of the Company’s Board of Directors,
after deliberation and careful consultation with its independent
financial and legal advisors, once again rejected an unsolicited
offer by Privet Fund Management LLC (“Privet”) for a proposed
transaction whereby Privet would purchase all of the issued and
outstanding shares of Synalloy not already owned by Privet.
Privet’s most recent offer indicated a lower price than its offer
dated May 29, 2019. “The Board and management team continue to
believe we can create greater value for our shareholders with our
strategy of growing our existing segments and pursuing accretive
acquisitions and expansion into complementary product lines,” said
Craig C. Bram, Synalloy’s President and Chief Executive
Officer.
In the interests of transparency to its
stockholders, Synalloy will provide copies of its correspondence to
date with Privet regarding this unsolicited offer in a Current
Report on Form 8-K to be filed with the Securities and Exchange
Commission.
Synalloy Corporation (Nasdaq: SYNL) is a growth
oriented company that engages in a number of diverse business
activities including the production of stainless steel pipe and
tube, galvanized pipe and tube, fiberglass and steel storage tanks,
specialty chemicals and the master distribution of seamless carbon
pipe and tubing. For more information about Synalloy Corporation,
please visit our website at www.synalloy.com.
This press release includes and incorporates by
reference "forward-looking statements" within the meaning of the
federal securities laws. All statements that are not historical
facts are "forward-looking statements." The words "estimate,"
"project," "intend," "expect," "believe," "should," "anticipate,"
"hope," "optimistic," "plan," "outlook," "should," "could," "may"
and similar expressions identify forward-looking statements. The
forward-looking statements are subject to certain risks and
uncertainties, including without limitation those identified below,
which could cause actual results to differ materially from
historical results or those anticipated. Readers are cautioned not
to place undue reliance on these forward-looking statements. The
following factors could cause actual results to differ materially
from historical results or those anticipated: adverse economic
conditions; the impact of competitive products and pricing; product
demand and acceptance risks; raw material and other increased
costs; raw materials availability; employee relations; ability to
maintain workforce by hiring trained employees; labor efficiencies;
customer delays or difficulties in the production of products; new
fracking regulations; a prolonged decrease in oil and nickel
prices; unforeseen delays in completing the integrations of
acquisitions; risks associated with mergers, acquisitions,
dispositions and other expansion activities; financial stability of
our customers; environmental issues; unavailability of debt
financing on acceptable terms and exposure to increased market
interest rate risk; inability to comply with covenants and ratios
required by our debt financing arrangements; ability to weather an
economic downturn; loss of consumer or investor confidence and
other risks detailed from time-to-time in the
Company's Securities and Exchange Commission filings. The
Company assumes no obligation to update the information included in
this release.
Contact: Dennis Loughran at (804)
822-3266
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