Synalloy buys DanChem

Synalloy has acquired DanChem for $32.95 million in a deal that it described as “a pivotal step forward … as we plan to significantly scale and accelerate profitable growth within our chemicals segment”. Both companies are based in Virginia. The 120 employees will all transfer.

DanChem is full-service speciality chemicals CMO, with three plants “producing a broad array of diversified products” at Danville and turning over about $30 million this year. The facility is claimed to have the largest fleet of horizontal reactors in the industry”. Synalloy, meanwhile, is active in piping, tubing and speciality chemicals.

According to Synalloy, DanChem will allow it to accelerate its process development capabilities and expand its process offering by bringing in  “differentiated assets, rail access and meaningful site acreage for continued expansion”. DanChem also offers additional customers in the CASE, additives, industrial and agricultural sectors.

“We also believe this acquisition creates a scalable specialty chemicals platform to become an acquirer of choice for other chemical companies that could further benefit from our breadth of services while serving to expand our capabilities and product offerings,” commented Chris Hutter, interim president and CEO of Synalloy.