Steffes sells oil tank division
Steffes Corp. on Friday announced the sale of its Dickinson oil tank division to an Ohio-based company, according to a release sent out Friday afternoon.
The sale was made to Worthington Industries, a leading diversified metal processing company with annual sales of approximately $2.6 billion headquartered in Columbus, Ohio. Worthington operates 83 facilities in 12 countries, according to the release.
“This strategic business decision allows Steffes to focus on providing innovative solutions to our customers through value-added products,” Steffes CEO Paul Steffes stated in a release. “By transferring the tank competency to another industry leader, Steffes is better positioned to do what we do best, provide innovation.”
The sale had been discussed for about a year and terms were agreed upon on Friday, Steffes President Joe Rothschiller said.
“All operations for our south division were turned over to Worthington Industries as of (Friday),” Rothschiller said. “This is a transaction that will help fund the rapid growth that Steffes has been facilitating. We’re pleased that we could reach this deal with a quality manufacturer like Worthington and think they will be a great addition to the community.”
Financial terms of the deal were not disclosed by either side on Friday.
Cathy Little, Worthington vice president of corporate communications and investor relations, said the numbers will likely be made public Monday when the deal is officially finalized.
Little added that the company did not have plans to cut staff at the manufacturing facility, which employs about three dozen people, according to Steffes officials.
Steffes Corp. began in the 1940s as a small manufacturing operation and started in the oil tank business in 2007 during the dawn of the Bakken energy boom.
Rothschiller said Steffes shipped close to 8,000 tanks during the past seven years.