Luxfer divesting aluminum cylinder business

[scubadada]

I would guess Metal Impact too, or no buyer. DGX has no Luxfer cylinders on their website. only Metal Impact, perhaps one Catalina.

 

[rjack321]

It's not that unusual to identify a business that requires lots of capital and/or produces little profit and announce your intent to divest it. The idea is to goose the growth rate of the original company and increase the stock price.

Every little bit of stock price increase they can stimulate with hype makes financing a sale more plausible and at better terms.

 

[Jim Lapenta]

The global metal supply industry is a mess right now. I work in a machine shop and see the issues daily with getting raw materials. We keep getting our raw dates pushed back. Right now carbon steel (especially US domestic) and aluminum are having the most impact on our business. It's not the fault of anyone really or even policies like some would like to cite. The pandemic shut down a lot of mills worldwide and created a demand for certain items that have come into play.
There is a backlog of ships sitting offshore with the raw and finished products on them.
In some cases, mfgs have had to try and get higher-priced domestic material where the requirements don't call for it and this creates a shortage for those companies that do have DFAR (domestically produced) requirements.
It's not going to get better quickly.

 

[Rose Robinson]

I would guess Metal Impact too, or no buyer. DGX has no Luxfer cylinders on their website. only Metal Impact, perhaps one Catalina.

Hello scubadada,

Although I do know the brand, I have never owned a Luxfer tank.

I have owned Worthington, who by the way have also stopped producing scuba tanks/cylinders, Faber, and Metal Impact.

I can only assume, which is not always the best thing to do, that Luxfer's decision is based on revenue, being sales or lack thereof, and expensive liability insurance, both huge ticket items.

Contrary to what a lot of people may think, scuba diving is a very small industry, and especially in light of the ongoing pandemic, profit and loss is more critical than ever.

Diving/dive product sales is way down right now, like everything else, and producers will not produce, what they can't sell, especially when the company producing the product in question is diversified, you cut off the affected appendage, to protect everything else from becoming infected.

Right now if you produced medical oxygen supplies/components and scuba tanks, I think I'd be placing all my efforts on the first, and dropping the last.

Rose.

 

[Johnoly]

metal impact is my guess........

I would guess Metal Impact too,....

Congrats @runsongas and @scubadada ,,,Looks like you both were correct in your advanced guess's !! Buyer was announced today.

 

[Ulfhedinn]

So Metal Impact will be selling Luxfer or their tanks.. which is exactly like luxfer? I going to miss Luxfer...

 

[runsongas]

metal impact is taking over the factory that was making the tanks. choices in the future for aluminum tanks will be metal impact or catalina.

 

[stretchthepenn]

metal impact is my guess. catalina is small and ESOP so doubtful there and unlikely cyl-tec wants in the scuba business. everybody else is either steel only or wants out of the scuba business (hymark assets were bought by worthington)

Cyl-Tec is making AL80 tanks for HOG/Divers Supply.

 

[donhealy]

Crisis averted!!!! Now on to the next one.

 

[rhwestfall]

Crisis averted!!!! Now on to the next one.

That would be LP steel tanks..