Williams Industries Announces Expansion of Business Lines; Acquisition of Delaware Company
FALLS CHURCH, Va., Aug. 7 /PRNewswire/ -- Williams Industries, Inc. (Nasdaq: WMSI - news), in keeping with its efforts to expand in the transportation infrastructure market, today announced the acquisition of an additional 8.275% interest in S.I.P., Inc. of Delaware, bringing its interest to more than 50%. S.I.P., located in Wilmington, Delaware, is a steel specialty manufacturer that is well known in the construction industry for fabrication of its sole product, ``stay-in-place'' steel decking used in the construction of highway bridges.
S.I.P., the leading manufacturer of this type of product in the Mid- Atlantic and Northeastern United States, has an extensive market area, including the entire East Coast of the United States from New England through Florida.
Williams Industries has maintained a minority ownership in S.I.P. since its inception in 1978. Since Williams Industries' ownership now exceeds 50%, S.I.P.'s results will be consolidated with Williams Industries' results, beginning with Fiscal Year 2001, which commenced August 1, 2000. S.I.P. had revenues in excess of $5 million for the fiscal year ended July 31, 1999.
It is anticipated the acquisition will not only bring diversity to Williams' manufacturing capabilities, product offerings and geographic base, but also will add substantial revenue to the company's consolidated results in addition to improving the company's balance sheet. Williams Industries' existing subsidiaries currently do the majority of their work in the Mid- Atlantic region.
In describing the transaction, Frank E. Williams, III, Williams Industries' president and CEO, said, ``This acquisition is a perfect fit with Williams Industries' strategic plan for expansion and long-term profitability. Because the company was already a minority shareholder in S.I.P., it was possible to initiate the acquisition based on a comprehensive knowledge of S.I.P.'s financials, its capabilities, and its other shareholders. While improving Williams Industries' long-term profitability was the key reason for the acquisition, management also is pleased with the expansion of its manufacturing capabilities as a result of the acquisition and believes there are synergies to be recognized with S.I.P. and an existing subsidiary, Williams Bridge Company due to the ability to market different products to the same customer bases.'' |
