Company News
Burgess-Manning’s parent company, Nitram Energy, Inc., has agreed to be aquired by Peerless Mfg. Co. (Nasdaq: PMFG). In an announcement dated April 8, 2008, Peerless announced that it has entered into a definitive stock purchase to acquire privately-owned Nitram Energy, Inc., with a closing expected in the quarter ending June 30, 2008, subject to financing and other customary closing conditions.
Nitram is the parent company of Burgess-Manning, Inc., Bos-Hatten, Inc, (shell & tube heat exchangers) and ALCO Products (hairpin and double-pipe heat exchangers).
Peter J. Burlage, Peerless CEO said: "We are excited about this opportunity to combine the Nitram organization with Peerless. Burgess-Manning, Bos-Hatten and Alco Products enjoy excellent reputations in the market place. This combination will expand our product offerings and customer base, our engineering and manufacturing resources, our ability to serve global markets and to leverage our organization infrastructure. We project that this transaction will be accretive to our shareholders."
Warren G. "Buck" Martin, Nitram’s Chairman stated: "I believe that this transaction will better position Nitram to grow and to continue its tradition of providing our customers with innovative high quality products and unsurpassed service throughout the world."
Industry News
Oil futures closed above US$100.00 per barrel in mid-February 2008. This is an approximate increase of 200% since the start of 2005, and roughly five times higher than ten years ago. Natural gas prices in mid-February 2008 are consistently above US$8.00/MMBtu. There are continued mixed signals by governments and opposition by environmentalists regarding future coal- and nuclear-based additions to electrical generating capacity. Natural gas-fired simple and combined cycle generating plants remain the least expensive and cleanest alternative, in addtition fo being faster to construct.
Worldwide increases in oil consumption (transportation fuel, petrochemicals, etc) and natural gas (electricity generation, reformation to hydrogen for clean fuels, etc), particularly in the developing countries, are putting upward pressure on prices.
