Ascent Industries Announces Sale Of Specialty Pipe & Tube For $55M In An All-Cash Transaction; The Transaction Closed On December 22, 2023
Portfolio Pulse from Benzinga Newsdesk
Ascent Industries Co. (NASDAQ:ACNT) has completed the sale of Specialty Pipe & Tube for $55 million in cash. The deal closed on December 22, 2023. The proceeds will be used to reduce debt and for general corporate purposes. This strategic move simplifies Ascent's operations and allows the company to focus on its core competencies for future growth. The divestiture is seen as a value-creating outcome for shareholders, as it provides capital for growth and reduces debt.
December 26, 2023 | 9:07 pm
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Ascent Industries has sold its Specialty Pipe & Tube business for $55M, aiming to reduce debt and focus on core growth areas. The transaction is expected to simplify operations and provide capital for future opportunities.
The sale of Specialty Pipe & Tube is likely to have a positive short-term impact on Ascent Industries' stock price. By selling a non-core asset, the company can reduce its debt and potentially improve its financial stability, which is generally viewed favorably by investors. The cash infusion also provides flexibility for the company to invest in growth opportunities, which could lead to future revenue growth. The strategic nature of the sale and the focus on core competencies may also be perceived positively by the market.
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