FORT WORTH, Texas,
March 13, 2018 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), a
global provider of metal coatings services, welding solutions,
specialty electrical equipment and highly engineered services to
the power generation, transmission, distribution and industrial
markets, announced today it has won the bid to acquire certain
assets through a 363 bankruptcy sale process, from Lectrus
Corporation, a privately-held Tennessee corporation, that designs and
manufactures custom metal enclosures and provides electrical and
mechanical integration. The Chattanooga, Tennessee facility of Lectrus is
included in the assets acquired.
Ken Lavelle, President of AZZ's
Electrical segment commented, "The opportunity to purchase certain
strategic assets from Lectrus through a 363 bankruptcy sale process
is a result of the consolidation that is occurring within the metal
enclosure industry in the U.S., which is particularly challenging
for smaller, less well-capitalized operators. AZZ is well
positioned to remain an opportunistic acquirer of strategic assets
that will further enhance AZZ's market share and improve
operations."
The Chattanooga facility is
located on a 585,000 square-foot site. The operations include a
210,000 square- foot manufacturing facility, as well as engineers,
estimators, project management, fabrication, integration and sales
personnel. Going forward, the facility will operate as AZZ
Enclosure Systems – Chattanooga LLC, a Delaware limited liability company, and will
complement AZZ's current metal enclosure and switchgear locations
in Kansas, Maryland, and Missouri. The acquisition is subject to final
court approval of the Sale Order, the Asset Purchase Price
Agreement and customary closing conditions. Closing is
expected on, or before, March 31,
2018.
Mr. Lavelle concluded, "The Chattanooga facility will expand our market
presence and advance our goal of strengthening our market position
in providing custom metal enclosures and related electrical
integration to utility, industrial and OEM customers. We look
forward to adding the Lectrus heritage and strength of the
Chattanooga operations to our AZZ
Electrical business. AZZ expects the AZZ Enclosure Systems -
Chattanooga facility to be
accretive to earnings within the first year of operation."
About Lectrus Corporation
Founded in 1968, Lectrus
Corporation is an industry leader in the design and manufacture of
custom metal enclosures and related electrical and mechanical
integration. The company serves a blue-chip base of
businesses that operate within the oil and gas, power generation,
transmission and distribution, petrochemical, and alternative
energy markets. Lectrus's custom-designed and fabricated enclosures
serve a variety of end-uses, including equipment centers, generator
enclosures, operator centers, and enclosures that protect
electrical power and mechanical control systems.
About AZZ Inc.
AZZ Inc. is a global provider of metal
coating services, welding solutions, specialty electrical equipment
and highly engineered services to the markets of power generation,
transmission, distribution and industrial in protecting metal and
electrical systems used to build and enhance the world's
infrastructure. AZZ's Metal Coatings Segment is a leading provider
of metal finishing solutions for corrosion protection, including
hot dip galvanizing to the North American steel fabrication
industry. AZZ's Energy Segment is dedicated to delivering safe and
reliable transmission of power from generation sources to end
customers, and automated weld overlay solutions for corrosion and
erosion mitigation to critical infrastructure in the energy markets
worldwide.
Safe Harbor Statement
Certain statements herein about our expectations of future
events or results constitute forward-looking statements for
purposes of the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. You can identify
forward-looking statements by terminology such as, "may," "should,"
"expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential," "continue," or the negative of these terms
or other comparable terminology. Such forward-looking statements
are based on currently available competitive, financial and
economic data and management's views and assumptions regarding
future events. Such forward-looking statements are inherently
uncertain, and investors must recognize that actual results may
differ from those expressed or implied in the forward-looking
statements. This release may contain forward-looking statements
that involve risks and uncertainties including, but not limited
to, changes in customer demand and response to products and
services offered by AZZ, including demand by the power generation
markets, electrical transmission and distribution markets, the
industrial markets, and the hot dip galvanizing markets; prices and
raw material cost, including zinc and natural gas which are
used in the hot dip galvanizing process; changes in the
political stability and economic conditions of the various markets
that AZZ serves, foreign and domestic, customer requested delays of
shipments, acquisition opportunities, currency exchange rates,
adequacy of financing, and availability of experienced management
and employees to implement AZZ's growth strategy. AZZ has provided
additional information regarding risks associated with the business
in AZZ's Annual Report on Form 10-K for the fiscal year ended
February 28, 2017 and other filings
with the SEC, available for viewing on AZZ's website at www.azz.com
and on the SEC's website at www.sec.gov. You are urged to consider
these factors carefully in evaluating the forward-looking
statements herein and are cautioned not to place undue reliance on
such forward-looking statements, which are qualified in their
entirety by this cautionary statement. These statements are based
on information as of the date hereof and AZZ assumes no obligation
to update any forward-looking statements, whether as a result of
new information, future events, or otherwise.
Contact:
Paul Fehlman, Senior Vice President
–Finance and CFO
AZZ Inc. 817-810-0095
Internet: azz.com
Lytham Partners
602-889-9700
Joe Dorame, Robert Blum or Joe
Diaz
Internet:
www.lythampartners.com
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SOURCE AZZ Inc.