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SCHAUMBURG, Ill. - Ascent Industries Co. (NASDAQ:ACNT), a producer and distributor of specialty chemicals and industrial tubular products with a market capitalization of $117.72 million, has reached a definitive agreement to sell substantially all assets of its subsidiary, Bristol Metals, LLC, to Ta Chen International, Inc. The all-cash deal, valued at approximately $45 million, is expected to be finalized by March 31, 2025. According to InvestingPro data, the company currently trades near its 52-week high of $12.38, with analysis suggesting the stock may be undervalued based on its Fair Value assessment.
Bristol Metals has been recognized since 1964 for its manufacture of stainless, duplex, super duplex, 6 moly, and nickel alloy welded steel pipes. Ascent Industries plans to use the proceeds from the sale to fuel growth within its specialty chemicals sector and for general corporate purposes. The company’s strong liquidity position, evidenced by a current ratio of 3.73 and liquid assets exceeding short-term obligations according to InvestingPro analysis, provides a solid foundation for this strategic move.
Bryan Kitchen, president and CEO of Ascent, expressed the company’s satisfaction with the transaction, stating it creates value for shareholders and aligns with the company’s strategic focus. Kitchen highlighted the improvements made at Bristol Metals over the past year but noted the sale to Ta Chen as beneficial due to the cyclical nature of Bristol Metals’ markets.
Following the sale, Ascent will retain American Stainless Tubing (ASTI), known for its premium ornamental stainless steel tubing. Additional details regarding the transaction are available in the investor relations section of Ascent’s website.
Angle Advisors served as the financial advisor, while Amundsen Davis, LLC provided legal counsel for Ascent in the transaction.
This strategic divestiture marks Ascent’s commitment to strengthening its position in the specialty chemicals market. The information for this article is based on a press release statement.
In other recent news, Ascent Industries reported its fourth-quarter 2024 earnings, missing analyst expectations with an EPS of $0.01, compared to the forecasted $0.03, and revenue of $40.7 million, falling short of the anticipated $46.4 million. Despite the earnings miss, the company achieved a significant turnaround in adjusted EBITDA, improving from a loss of $15.9 million in 2023 to a positive $4.0 million in 2024. Year-over-year, Ascent Industries saw a decline in net sales to $177.9 million from $193.2 million, yet gross profit increased substantially to $22.1 million from $1.5 million. The company launched a new product portfolio targeting a $2.5 billion market, which aligns with its strategic growth initiatives. Ascent Industries maintained a debt-free status with a strong cash position, enabling continued investment in both organic and inorganic growth opportunities. Looking forward, the company anticipates top-line growth more likely in the second half of 2025. Analysts noted the company’s strategic pivot towards growth, highlighting its strong order backlog and potential margin improvements in Specialty Chemicals. Additionally, Ascent Industries has expanded its stock repurchase program, allowing for the acquisition of up to an additional 1,000,000 shares over the next 24 months.
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