Ascent Industries Co. Announces Sale of Bristol Metals, LLC for $45 Million

Rhea-AI Summary

Ascent Industries Co. (Nasdaq: ACNT) has announced a definitive agreement to sell Bristol Metals, (BRISMET) to Ta Chen International for $45 million in an all-cash transaction. The deal is expected to close on March 31, 2025.

BRISMET, established in 1964, specializes in manufacturing stainless, duplex, super duplex, 6 moly and nickel alloy welded steel pipe. The proceeds will be utilized to accelerate growth in Ascent's specialty chemical business and for general corporate purposes.

Following the transaction, Ascent's tubular segment will retain American Stainless Tubing (ASTI), which produces premium ornamental stainless steel tubing. Angle Advisors and Amundsen Davis, served as financial and legal advisors respectively for the transaction.

Positive

• All-cash transaction valued at $45 million
• Proceeds to be used for growth in specialty chemicals business
• Strategic divestment reduces exposure to cyclical end-markets

Negative

• Loss of BRISMET's revenue stream and market presence
• Reduction in business diversification

Insights

Financial Analyst

Ascent Industries' sale of Bristol Metals for $45 million represents a strategic pivot with significant capital reallocation implications. This all-cash transaction, at approximately 38% of Ascent's current market capitalization ($118 million), provides substantial financial flexibility for a company of this size.

The divestiture appears strategically sound as management cited the inherent cyclicality in BRISMET's end-markets as a key consideration. For a smaller public company like Ascent, removing this cyclical exposure could reduce earnings volatility and potentially improve investor perception of the company's risk profile.

This transaction effectively transforms Ascent into a more focused enterprise with greater concentration on their specialty chemicals segment. The company still maintains some presence in the tubular segment through American Stainless Tubing, but this move clearly signals management's belief that shareholder value creation will come primarily through their chemicals business.

The $45 million cash infusion provides Ascent with significant dry powder for both organic growth initiatives and potential acquisitions in the specialty chemicals sector. Given Ascent's relatively modest size, this capital could be particularly impactful if deployed effectively into higher-margin, less cyclical operations.

With this transaction closing at the end of March 2025, investors should closely monitor management's capital allocation decisions in the coming quarters to evaluate how effectively they leverage this strategic repositioning.

SCHAUMBURG, Ill.--(BUSINESS WIRE)-- Ascent Industries Co. (Nasdaq: ACNT) (“Ascent” or the “Company”), an industrials company focused on the production and distribution of specialty chemicals and industrial tubular products, has announced it has reached a definitive agreement to sell substantially all of the assets of Bristol Metals, LLC (“BRISMET”) to Ta Chen International, Inc. (Ta Chen), a manufacturer and distributor of stainless and aluminum coils, sheets, plates, long products, tubes and PVFs, for approximately $45 million in an all-cash transaction. The transaction is planned to close on March 31, 2025.

BRISMET has been an industry leader in stainless, duplex, super duplex, 6 moly and nickel alloy welded steel pipe manufacture since 1964. Proceeds from the transaction will be used to accelerate organic and inorganic growth of the company’s specialty chemical business as well as general corporate purposes.

“We are proud of achieving this value-creating outcome for Ascent shareholders. While transformational changes have been implemented at BRISMET over the past year, the inherent cyclicality in its end-markets makes it a much better fit for a more sector focused franchise,” said Bryan Kitchen, president and CEO of Ascent. “This transaction provides Ascent with additional capital to pursue growth opportunities within the Specialty Chemicals segment. We are proud of BRISMET’s performance under our stewardship and believe BRISMET is positioned for a strong future with Ta Chen.”

Ascent’s remaining assets within the tubular segment consist of American Stainless Tubing (ASTI), a producer of premium ornamental stainless steel tubing. More information about the Bristol Metals transaction can be found within the presentation section of the Company’s investor relations site.

Angle Advisors acted as financial advisor and Amundsen Davis, LLC acted as legal advisor to Ascent.

About Ascent Industries Co.

Ascent Industries Co. (Nasdaq: ACNT) is a company that engages in a number of diverse business activities including the production of specialty chemicals and industrial tubular products. For more information about Ascent, please visit its website at www.ascentco.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable federal securities laws. All statements that are not historical facts are forward-looking statements. Forward looking statements can be identified through the use of words such as "estimate," "project," "intend," "expect," "believe," "should," "anticipate," "hope," "optimistic," "plan," "outlook," "should," "could," "may" and similar expressions. The forward-looking statements are subject to certain risks and uncertainties 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 and to review the risks as set forth in more detail in Ascent Industries Co.’s Securities and Exchange Commission filings, including our Annual Report on Form 10-K, which filings are available from the SEC or on our website. Ascent Industries Co. assumes no obligation to update any forward-looking information included in this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250312527901/en/

Company Contact

Ryan Kavalauskas

Chief Financial Officer

1-630-884-9181

Investor Relations

Cody Slach and Cody Cree

Gateway Group, Inc.

1-949-574-3860

ACNT@gateway-grp.com

Source: Ascent Industries Co.

FAQ

When will Ascent Industries (ACNT) complete the sale of Bristol Metals?

The sale of Bristol Metals to Ta Chen International is planned to close on March 31, 2025.

How much is Ta Chen paying for Bristol Metals (BRISMET)?

Ta Chen International is acquiring BRISMET for $45 million in an all-cash transaction.

What will Ascent Industries (ACNT) do with the proceeds from the BRISMET sale?

Proceeds will be used to accelerate organic and inorganic growth of the specialty chemical business and general corporate purposes.

What assets will remain in Ascent's (ACNT) tubular segment after the BRISMET sale?

American Stainless Tubing (ASTI), which produces premium ornamental stainless steel tubing, will remain in the tubular segment.

Why is Ascent Industries (ACNT) selling Bristol Metals?

The sale aims to reduce exposure to cyclical end-markets and create value for shareholders while focusing on specialty chemicals growth.