AZZ Incorporated Announces Agreement To Acquire The Galvanizing Business Of Trinity Industries, No terms

AZZ incorporated

, 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.

. 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."