Welded steel pipe maker Northwest Pipe Co. (NWPX) has purchased steel pipe fabricator Permalok Corporation for an undisclosed price. Permalok fabricates steel pipes using its patented interlocking pipe joining system.
With the buyout, Northwest Pipe is better placed to serve its customer needs through expanded product offerings. The company believes that Permalok’s products has greater market potential as they offer a lower cost solution vis-à-vis products currently available on the market.
Permalok's interlocking pipe joining system reinforces Northwest Pipe’s offerings by providing alternate joint solutions to the latter’s product line. In addition, Permalok's rolled and welded steel pipe products that are being used in trenchless applications boosts Northwest Pipe's Water Transmission business. Northwest Pipe also envisions opportunities to expand in other segments such as structural pipe, industrial and the water transmission business.
Permalok will be operating as Permalok Corp, a Northwest Pipe Company, and will continue to do business out of its St. Louis and Salt Lake City manufacturing locations.
Northwest Pipe makes large-diameter steel pipeline systems for use in water infrastructure applications, mainly in drinking water systems. The company also makes smaller diameter, electric resistance welded steel pipes and other similar products for use in energy, construction, agriculture, commercial and industrial, and traffic signpost applications.
Northwest Pipe currently retains a Zacks Rank #3 (Hold).
Other companies in the metal processing and fabrication industry having favorable Zacks Rank are NN Inc. (NNBR), CIRCOR International, Inc. (CIR) and Worthington Industries, Inc. (WOR). While both NN and CIRCOR hold a Zacks Rank #1 (Strong Buy), Worthington Industries retains a Zacks Rank #2 (Buy).
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