Worthington Industries, Inc. announced that its Pressure Cylinders segment has signed an agreement to acquire a 75% stake in ARITAS, one of Europe's leading LNG and cryogenic technology companies offering a broad portfolio of LNG products, cryogenic vessels, systems and services.
Located in Istanbul, Turkey, ARITAS employs nearly 300 people and generated sales of approximately $40 million for its fiscal year ending Dec. 31, 2013. The transaction is awaiting Turkish government approval, which is expected to be completed later this month. ARITAS' LNG products account for a majority of sales.
For nearly a decade, ARITAS has been building and servicing the virtual LNG pipeline in Turkey via LNG transport trailers, LNG ISO containers, LNG bulk tanks and LNG satellite stations for re-gasification. ARITAS is also an emerging global leader in LNG fueling systems, including those for natural gas powered marine vessels.
ARITAS' product portfolio includes an array of industrial gas products including engineered tanks holding up to 500,000 liters, transport trailers, bulk tanks and microbulk storage, which will be complemented by Worthington's home grown liquid cylinder offering.
"We are very excited to add ARITAS' LNG and cryogenics capabilities and reputation for quality. We believe they will dramatically increase our ability to grow our LNG and cryogenics businesses quickly and globally," said John McConnell, Chairman and CEO of Worthington Industries.
"ARITAS' experience and strong LNG product lineup fit our strategy to expand our footprint in energy products, as well as products for alternative fuels to power vehicles," said Andrew Billman, President of the Pressure Cylinders business segment. "ARITAS' technology is easily adaptable to markets it is currently not servicing, including the Americas and Western Europe.
Thoughtful integration with our global sales force will help us drive strong commercial synergies." Today, ARITAS operates a 270,000 square foot manufacturing facility in Istanbul and is committed to build a new state-of-the-art facility approximately 125 miles away in Bandirma.
The new facility will ultimately provide a two to three times capacity increase with opportunity for future expansion and is located near a large Turkish port that serves some of the world's best shipping routes, enhancing the accessibility of target markets.