Synalloy Announces Rejection of Unchanged Offer from Privet Fund Management LLC
May 29 2019 - 12:00PM
Synalloy Corporation (Nasdaq: SYNL) announced today that the
Executive Committee of its Board of Directors, acting on behalf of
the 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 was unchanged and
simply reiterated its offer dated April 23, 2019. “The Board
believes that Privet has two options at this point,” said Craig C.
Bram, Synalloy’s President and Chief Executive Officer.
“Privet should either negotiate with the Executive Committee of the
Board to determine an acceptable price, or tender for the shares
and let the shareholders vote directly on the offer. This
back and forth letter writing about an inadequate $20 per share
offer is distracting and counter to our goal of building
shareholder value,” said Bram.
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 tube.
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
Synalloy (NASDAQ:SYNL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Synalloy (NASDAQ:SYNL)
Historical Stock Chart
From Apr 2023 to Apr 2024