AZZ, Inc. acquired the assets of U.S. Galvanizing, LLC, the two companies have announced in a special statement. US Galvanizing is a premier provider of steel corrosion coating services, and a wholly-owned subsidiary of Trinity Industries, Inc.
According to the transaction, the purchase of these assets will increase the network of AZZ Galvanizing Services especially its hot-dip galvanizing plants to 42 sites in the United States and Canada. The acquisition may have also stemmed from the fact that U.S. Galvanizing, LLC has generated revenue of approximately $34 million in sales in a twelve-month basis as of March 31, 2015.
U.S. Galvanizing, LLC assets that were acquired by AZZ includes six galvanizing facilities found in Hurst, Texas; Kennedale, Texas; Big Spring, Texas; San Antonio, Texas; Morgan City, Louisiana; and Kosciusko, Mississippi. The transaction also included Texas Welded Wire, a secondary business integrated within U.S. Galvanizing’s Hurst, Texas facility.
As part of this acquisition, AZZ and Meyer Steel Structures, a manufacturer of steel structures for electricity transmission and distribution, and a wholly-owned subsidiary of Trinity Industries, have also entered into a long-term supply and service agreement. This includes a provision wherein AZZ will be the primary supplier of hot-dip galvanizing services for Meyer Steel Structures.
Tom Ferguson, president and chief executive officer of AZZ has mentioned in a statement, “This is an important strategic acquisition for AZZ, as we expand our network of galvanizing plants and solidify our relationship with Trinity. Additionally, this further expands our penetration in the states of Texas, Louisiana and Mississippi and it further solidifies our position as the leading North American hot-dip galvanizing provider to the steel fabrication industry for corrosion protection.”
Mr. Ferguson also added, “The ability to acquire six galvanizing properties in one transaction represents a unique opportunity given the current dynamics of the industry. Closer proximity to our clients in the area of the acquired properties will enhance service and turnaround times and provides us the opportunity to develop and attract new clients with the increased capacity and capabilities that we have now added to our portfolio of services. We are also pleased to be the primary provider of galvanizing services to Meyer Steel Structures. While we have provided services to Meyer in the past, with this new agreement we will continue to generate additional efficiencies and value for both parties. We anticipate this acquisition to be accretive to the current fiscal year. We are excited with the opportunities ahead.”
AZZ incorporated (NYSE:AZZ) is a company that was established in 1956 and has headquarters in Fort Worth, TX. The company is a specialty electrical equipment manufacturer and provider of highly engineered services to various industries. Their specialties are power generation, transmission, distribution and industrial as well as a leading provider of hot dip galvanizing services to North American steel fabrication market.
About AZZ, Inc.
AZZ, Inc. is an equipment manufacturer and provider of engineering services to various companies and industries. It has several divisions. AZZ Energy is the leading provider of specialized products and services designed to support industrial, nuclear and electrical applications. AZZ Energy has the most technologically advanced solutions and engineering resources developed from a legacy of proven, reliable product options; AZZ Energy is ideally positioned to meet the most challenging application-specific demands to ensure safe, productive facilities.
AZZ Galvanizing on the other hand provides hot dip galvanizing to the steel fabrication industry through facilities located throughout North America. It is North America’s Largest Galvanizer. AZZ’s vast network of facilities is adequately positioned to serve a variety of industries and applications. Hot-dip galvanizing is a metallurgical process in which molten zinc used to prevent corrosion to fabricated steel. This process extends the life of steel for up to 50 years. AZZ, Inc. stock market evolution: http://www.marketwatch.com/investing/stock/azz
About Tom Ferguson
Mr. Thomas E. Ferguson is the President, Chief Executive Officer and Director of AZZ incorporated. He has extensive experience in the industries in which AZZ operates, having served as Chief Executive Officer of FlexSteel Pipeline Technologies, Inc., a provider of pipeline technology products and services. Prior to serving in this position, Mr. Ferguson spent 25 years serving in various executive capacities with Flowserve Corp. global provider of fluid motion and control products and services, and its affiliates.
About U.S. Galvanizing
U.S. Galvanizing, LLC is a premier provider of steel corrosion coating services. The company offer high-value, hot dip galvanizing services to the steel industry. U.S. Galvanizing, LLC stock market evolution: http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=114340253
About Trinity Industries
Trinity Industries Inc. owns a variety of businesses which provide product and services to the industrial, energy, transportation and construction sectors. The company has five business groups which are Rail Group, Construction Products Group, Inland Barge Group, Energy Equipment Group and Railcar Leasing & Management Services Group. Trinity Industries stock market evolution: http://www.marketwatch.com/investing/stock/trn