Ascent sells stainless steel tubing business to Triple-S Steel for $16m

Published 23/06/2025, 21:50
Ascent sells stainless steel tubing business to Triple-S Steel for $16m

SCHAUMBURG, Ill. - Ascent Industries Co. (NASDAQ:ACNT), a specialty chemicals company with a market capitalization of $121 million and current trading price of $12.10, announced Monday it has agreed to sell its American Stainless Tubing, LLC (ASTI) assets to First Tube, LLC, a subsidiary of Triple-S Steel Holdings, Inc., for approximately $16 million in cash. According to InvestingPro analysis, the company’s stock has delivered a 23% return over the past year.

The transaction, expected to close on June 30, 2025, represents the final divestiture of Ascent’s tubular assets as the company completes its strategic shift toward focusing exclusively on specialty chemicals operations. With a healthy current ratio of 2.95, InvestingPro data shows the company maintains strong liquidity to support this transition.

"The sale of ASTI, the last of our operating tubular assets, underscores our commitment to completing our pivot to a focused, high-return specialty chemicals platform," said Bryan Kitchen, President and CEO of Ascent.

ASTI manufactures ornamental stainless-steel tubing for various markets from its North Carolina facilities. According to the company’s press release statement, proceeds from the sale will support both organic and inorganic growth initiatives within Ascent’s Specialty Chemicals segment and general corporate purposes.

The divestiture follows similar sales of tubular assets over the past 18 months as Ascent narrows its business focus.

Angle Advisors served as financial advisor and Amundsen Davis, LLC as legal advisor to Ascent for the transaction, which remains subject to customary closing conditions.

Ascent Industries Co. is primarily engaged in the production and distribution of specialty chemicals and is listed on the Nasdaq exchange. While the company reported $174.65 million in revenue over the last twelve months, InvestingPro analysis indicates it currently trades below its Fair Value, with additional insights available in the comprehensive Pro Research Report covering 1,400+ US equities.

In other recent news, Ascent Industries Co. reported a notable miss in its Q1 2025 earnings, posting an earnings per share (EPS) of -$0.23, significantly below the forecasted $0.12. Despite the earnings shortfall, the company achieved a gross margin increase to 19.3% from 8.3% the previous year, although net sales declined to $24.7 million from $28 million in Q1 2024. In a strategic move, Ascent Industries executed a share buyback, purchasing 499,700 shares at $12.00 each, representing approximately 5% of its outstanding common stock. This buyback was conducted under the company’s existing 10b5-1 share repurchase program. Additionally, Ascent Industries announced a change in its independent registered public accounting firm, appointing Baker Tilly US, LLP following the merger of its previous auditor, Moss Adams LLP, with Baker Tilly. There were no disagreements between Ascent Industries and Moss Adams regarding accounting principles or auditing procedures during the transition. These developments reflect the company’s ongoing efforts to manage its financial strategy and operational adjustments.

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