AZZ incorporated AZZ, a global provider of galvanizing services, welding solutions,
specialty electrical equipment and highly engineered services, announced
today that it has acquired the assets of U.S. Galvanizing, LLC, a premier
provider of steel corrosion coating services, and a wholly-owned subsidiary
of Trinity Industries, Inc. TRN. With the purchase of these assets
AZZ Galvanizing Services has increased its network of hot-dip galvanizing
plants to 42 sites in the United States and Canada. U.S. Galvanizing, LLC
generated revenue of approximately $34 million in sales on a trailing
twelve-month basis as of March 31, 2015.
The acquisition of the U.S. Galvanizing, LLC assets includes six galvanizing
facilities located in Hurst, Texas; Kennedale, Texas; Big Spring, Texas; San
Antonio, Texas; Morgan City, Louisiana; and Kosciusko, Mississippi.
Additionally, the transaction includes 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 leading manufacturer
of steel structures for electricity transmission and distribution, and a
wholly-owned subsidiary of Trinity Industries, have entered into a long-term
supply and service agreement where AZZ will be the primary supplier of
hot-dip galvanizing services for Meyer Steel Structures.
Tom Ferguson, president and chief executive officer of AZZ incorporated,
commented, "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 continued, "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."
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