Ascent Industries Co. to Divest American Stainless Tubing for $16 Million, Marking Final Step in Strategic Portfolio Realignment
Asset Sale Announcement: Ascent Industries Co. has entered into an agreement to sell its subsidiary American Stainless Tubing, LLC to First Tube, LLC for approximately $16 million in cash, with the transaction expected to close on June 30, 2025.
Strategic Focus Shift: The sale marks the completion of Ascent's transition to a specialty chemicals platform, allowing the company to concentrate on growth initiatives within this sector while utilizing proceeds from the sale for further development and corporate purposes.
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Ascent Industries Secures New Business Program Expected to Generate Over $10 Million Annually
- Business Growth: Ascent Industries announced the acquisition of a new business program expected to generate over $10 million in incremental annual revenue, representing approximately 15% growth over the company's trailing twelve-month revenue, highlighting the strength of its Chemicals-as-a-Service business model.
- Margin Improvement: The new program is anticipated to exceed current average margins, indicating that as volumes ramp up and utilization increases, Ascent can achieve significant margin expansion, thereby enhancing earnings quality.
- Rapid Delivery Capability: CEO Bryan Kitchen emphasized that customers choose Ascent for its speed, reduced complexity, and reliable performance, showcasing the agility of its customer-centric platform which will drive future business growth.
- Future Outlook: With production and shipments already underway, the program is on track to achieve full run-rate in the first quarter of 2026, further solidifying Ascent's competitive position in the specialty chemicals market.
Ascent Industries Reduces Costs by $2.1M, Enhancing Earnings Profile as a Dedicated Specialty Chemicals Company
Lease Assignment Announcement: Ascent Industries Co. has announced that its sale-leaseback partner will assign the lease for its former tubular facility in Munhall, Pennsylvania to a new tenant, effective November 14, 2025.
Cost Reduction: This lease assignment will eliminate approximately $2.1 million in annual facility-related costs, including rent, taxes, utilities, and insurance, thereby strengthening Ascent's earnings profile and cash flow.
Company Growth Strategy: CEO Bryan Kitchen emphasized that the company is focused on accelerating the growth of its Chemicals-as-a-Service platform and is actively winning new projects and scaling its business model.
Company Overview: Ascent Industries Co. is a specialty chemicals platform dedicated to developing, producing, and distributing tailored chemical solutions, with more information available on their website.