Synalloy Corporation (NASDAQ:SYNL) Files An 8-K Other EventsITEM 8.01 OTHER EVENTS
Synalloy Corporation (NASDAQ:SYNL) Files An 8-K Other Events
As previously disclosed in Synalloy Corporation’s filings with the Securities and Exchange Commission, in January 2014, a customer (the “Plaintiff”) filed a lawsuit against Synalloy Corporation, a Delaware corporation (“Synalloy”), Synalloy’s wholly-owned subsidiary, Palmer of Texas Tanks, Inc., a Texas corporation (“Palmer”), and an unrelated defendant in Texas state court alleging breach of warranty, among other claims. This matter arose out of products manufactured and sold by Palmer to the Plaintiff prior to Synalloy’s acquisition of all of Palmer’s outstanding stock in August 2012.
In August and September 2016, the parties to the lawsuit tried the matter in a bench trial in the District Court of Harris County, Texas, 333rd Judicial District (the “Court”). On December 31, 2016 (but made available to the parties to the lawsuit on January 3, 2017), the Court entered final judgment in favor of the Plaintiff and Synalloy and against Palmer. The Court ordered Palmer to pay the Plaintiff approximately $8.60 million in damages, plus pre- and post-judgment interest, and approximately $1.04 million in attorneys’ fees. The Court ruled Synalloy has no liability to the Plaintiff.
Palmer is currently analyzing its post-judgment options, including, but not limited to, a motion for the Court to reconsider the judgment and other appeal rights.
The former shareholders of Palmer are contractually bound, to the Stock Purchase Agreement by and among Synalloy and the former shareholders dated August 10, 2012, to hold harmless and indemnify Synalloy and Palmer from any and all costs and damages, including the judgment described above and all associated attorneys’ fees, arising out of this matter. To date, the former shareholders of Palmer have paid all costs incurred by Palmer and Synalloy related to this lawsuit and claimed for reimbursement.
About Synalloy Corporation (NASDAQ:SYNL)
Synalloy Corporation is a chemical manufacturing company. The Company operates through two segments: the Metals Segment and the Specialty Chemicals Segment. The Company’s Metals Segment comprises three subsidiaries: Synalloy Metals, Inc., which owns Bristol Metals, LLC (BRISMET), located in Bristol, Tennessee; Palmer of Texas Tanks, Inc. (Palmer), located in Andrews, Texas; and Specialty Pipe & Tube, Inc. (Specialty), located in Mineral Ridge, Ohio and Houston, Texas. The Company’s Metals Segment manufactures stainless steel, other alloy pipe, storage solutions and separation equipment. The Company’s Specialty Chemicals segment consists of the Company’s subsidiary, Manufacturers Soap and Chemical Company (MS&C). The Specialty Chemicals Segment manufactures lubricants, surfactants, reaction intermediaries, sulfated fats and oils, and chemical tolling manufacturing resources. Synalloy Corporation (NASDAQ:SYNL) Recent Trading Information
Synalloy Corporation (NASDAQ:SYNL) closed its last trading session up +0.10 at 11.15 with 8,697 shares trading hands.
Synalloy Corporation is a chemical manufacturing company. The Company operates through two segments: the Metals Segment and the Specialty Chemicals Segment. The Company’s Metals Segment comprises three subsidiaries: Synalloy Metals, Inc., which owns Bristol Metals, LLC (BRISMET), located in Bristol, Tennessee; Palmer of Texas Tanks, Inc. (Palmer), located in Andrews, Texas; and Specialty Pipe & Tube, Inc. (Specialty), located in Mineral Ridge, Ohio and Houston, Texas. The Company’s Metals Segment manufactures stainless steel, other alloy pipe, storage solutions and separation equipment. The Company’s Specialty Chemicals segment consists of the Company’s subsidiary, Manufacturers Soap and Chemical Company (MS&C). The Specialty Chemicals Segment manufactures lubricants, surfactants, reaction intermediaries, sulfated fats and oils, and chemical tolling manufacturing resources. Synalloy Corporation (NASDAQ:SYNL) Recent Trading Information
Synalloy Corporation (NASDAQ:SYNL) closed its last trading session up +0.10 at 11.15 with 8,697 shares trading hands.
