Trinity Industries announced that it has acquired the assets of WesMor Cryogenic Companies through a newly formed subsidiary. WesMor specializes in the manufacturing, repair, and rehabilitation of cryogenic containers that store and transport LNG and other industrial gases with initial expected annual revenues of approximately $25 million.
The transaction includes the acquisition of a manufacturing facility in La Porte, Texas and three service facilities located in La Porte; Slidell, Louisiana; and Port Washington, Ohio.
“We are very excited to add WesMor to our portfolio of companies. They are an ideal fit bringing strong competencies and industry expertise that Trinity can further leverage,” said Timothy R. Wallace, Trinity’s Chairman, CEO, and President. “As a result of the energy renaissance occurring in North America, we are seeing increasing demand opportunities to provide cryogenic storage and transportation products serving the oil, gas, and chemical markets. We continue to invest resources to identify and pursue opportunities to add new businesses to our portfolio that enhance our competencies, complement our product offering, and expand our reach in the markets we are pursuing,” added Wallace.
“WesMor’s expertise and products align very well with our strategy of expanding our Energy Equipment Group’s product offering and services. Further expansion in the cryogenic containers market is an ideal product extension for Trinity given the various storage and transportation applications these containers have within the oil, gas, and chemical markets,” said William A. McWhirter II, Trinity Industries, Inc. Senior Vice President and Construction, Energy, and Inland Barge Group President. “The manufacturing process utilizes many of Trinity’s existing competencies, and we will add value as a result of our scale and manufacturing experience. We have a strong interest in growing and expanding our product lines in the cryogenic industry,” added McWhirter.
The assets and results of operations for the WesMor acquisition will be reflected in the Energy Equipment Group for financial reporting purposes. The Company will provide more details concerning the acquisition and financial impact on its upcoming fourth quarter conference call.
LNG World News Staff, January 14, 2014; Image: WesMor