Worthington acquires Palmer Mfg. & Tank

Steel processor Worthington acquires tank maker Palmer to expand energy business; shares jump

Associated Press

Shares of Worthington Industries Inc. jumped Tuesday after the steel processor said it had acquired Palmer Mfg. & Tank Inc., which makes equipment for oil and gas companies.

The financial terms of the deal were not disclosed.

Columbus, Ohio-based Worthington said the deal will expand its energy business. Worthington makes flat-rolled steel and cylinders that hold fuel for consumer products such as gas barbecue grills, as well as for industrial uses.

Palmer, based in Garden City, Kan., makes steel and fiberglass tanks and processing equipment for the oil and gas industry, Worthington said, as well as fiberglass tanks for sectors including agriculture and chemicals. The company employs about 200 people.

Oil and natural gas production has boomed in the U.S. in recent years thanks to new drilling techniques.

Worthington shares jumped more than 9 percent to $34.63 in electronic trading after the market close. The stock had finished up $1.54, or 5.1 percent, at $31.65 Tuesday. Shares have risen 72 percent in the past 12 months.

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