Quarterly report [Sections 13 or 15(d)]

Discontinued Operations

v3.25.1
Discontinued Operations
 3 Months Ended
Mar. 31, 2025
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
Divestiture of Bristol Metals, LLC.
On March 12, 2025, Ascent Industries Co. (“Ascent”) and its wholly-owned subsidiaries Synalloy Metals, Inc. ("Synalloy Metals") and Bristol Metals, LLC. ("BRISMET"), entered into an Asset Purchase Agreement (the “Purchase Agreement”) pursuant to which they sold substantially all of the assets related to BRISMET to Bristol Pipe and Tube, Inc., a Delaware corporation and wholly-owned subsidiary of Ta Chen International, Inc. (the “Purchaser”). The consideration for the transaction was approximately $45 million of cash proceeds subject to certain closing adjustments. Ascent and Purchaser also entered into a Transition Services Agreement (the “TSA”) dated March 12, 2025, pursuant to which Ascent has agreed to provide certain transition services to Purchaser immediately after the closing for certain agreed upon transition periods. On April 4, 2025, the Company and Purchaser completed the transaction contemplated by the Purchase Agreement. As result of the sale, BRISMET results of operations are classified under discontinued operations for all periods presented. Prior to the divestiture, BRISMET was reported under the Company's Tubular Products segment.

The following table presents the aggregate carrying amounts of the classes of assets and liabilities of the Company's discontinued operations:
(in thousands) March 31, 2025 December 31, 2024
Carrying amounts of assets included as part of discontinued operations:
Cash and cash equivalents $ —  $ 10 
Accounts receivable, net 11,059  9,433 
Inventories 33,836  31,433 
Prepaid expenses and other current assets 629  668 
Current assets classified as discontinued operations 45,524  41,544 
Property, plant and equipment, net 5,748  5,660 
Other non-current assets, net 2,281  2,319 
Long-term assets classified as discontinued operations 8,029  7,979 
Total assets classified as discontinued operations $ 53,553  $ 49,523 
Carrying amounts of current liabilities included as part of discontinued operations:
Accounts payable 11,495  5,797 
Deferred revenue 340  1,360 
Accrued expenses and other current liabilities 1,212  1,789 
Total current liabilities classified as discontinued operations $ 13,047  $ 8,946 
The financial results are presented as loss from discontinued operations, net of tax on the unaudited condensed consolidated statements of income (loss). The following table summarizes the results of the Company's discontinued operations:
Three Months Ended March 31,
(in thousands) 2025 2024
Net sales $ 19,376  $ 16,400 
Cost of sales 17,868  16,602 
Gross profit 1,508  (202)
Selling, general and administrative expense 686  1,282 
Acquisition costs and other 2,098  101 
Asset impairments —  1,115 
Loss on discontinued operations before income taxes (1,276) (2,700)
Income tax expense (benefit) 15  (973)
Net loss from discontinued operations $ (1,291) $ (1,727)