FORT
WORTH, Texas, May 13, 2022
/PRNewswire/ -- AZZ Inc. ("AZZ" or the "Company") (NYSE:
AZZ), a global provider of galvanizing and metal coating
solutions, welding solutions, specialty electrical equipment and
highly engineered services for maintaining and building critical
infrastructure, today announced that it has completed its
previously announced acquisition of the Precoat Metals
business division ("Precoat") of Sequa Corporation ("Sequa"), a
portfolio company of global investment firm Carlyle (NASDAQ: CG),
for a purchase price of approximately $1.28
billion.
Headquartered in St. Louis,
Missouri, Precoat is the leading independent provider of
metal coil coating solutions in North
America. Precoat engages in the advanced application of
protective and decorative coatings and related value-added services
for steel and aluminum coil primarily serving the construction;
appliance; heating, ventilation and air conditioning (HVAC);
container; transportation and other end markets. Precoat has
approximately 1,100 employees and operates a network of 13
strategically located manufacturing facilities with 15 coating
lines and 17 value-added processing lines. For the twelve months
ended December 31, 2021, Precoat
generated sales of approximately $700
million and adjusted EBITDA of approximately $137 million.
Tom Ferguson, Chief Executive
Officer of AZZ, commented, "Today we welcome the 1,100
employees of Precoat to the AZZ family and begin the work of
swiftly integrating Precoat into AZZ while leveraging the
opportunities this acquisition creates. As I have previously
stated, this acquisition significantly broadens our metal coatings
offering, creating unrivaled scale and breadth of solutions in both
the prepainted and post-fabrication coatings markets. We believe
the coil coating market will provide sustainable future growth for
AZZ, and we are excited to add a talented leadership team that
shares similar values as well as employee and customer focus as we
do at AZZ. This acquisition is consistent with our previously
communicated strategy prioritizing North American coatings targets
with strong strategic fit that are accretive within the first year
of operation, and it is a testament to our commitment to drive
profitable growth. This acquisition represents a continued
transition of AZZ from a diverse holding company to a focused
provider of coating and galvanizing services for critical
applications."
Kurt Russell, President of
Precoat, commented, "This is an exciting milestone for Precoat
Metals, as we continue our 60-year evolution. As the Precoat
business shifts from being a non-core asset to one that is a
paramount strategic priority within AZZ, Precoat will have the
resources needed to continue our core growth strategies in support
of our customers and, in return, accelerate sales growth and
earnings for AZZ."
About AZZ Inc.
AZZ Inc. is a global provider of galvanizing and a variety of
metal coating solutions, welding solutions, specialty electrical
equipment and highly engineered services to a broad range of
markets, including, but not limited to, the power generation,
transmission, distribution, refining and industrial markets. AZZ's
Metal Coatings segment is a leading provider of metal finishing
solutions for corrosion protection, including hot-dip galvanizing,
spin galvanizing, powder coating, anodizing and plating, to the
North American steel fabrication industry. AZZ's Infrastructure
Solutions 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 and waste
management markets worldwide.
About Precoat Metals
Founded in 1961 and headquartered in St. Louis, Missouri, Precoat Metals is the
leading independent provider of metal coil coating solutions in
North America. Precoat engages in
the advanced application of protective and decorative coatings and
related value-added services for steel and aluminum coil primarily
serving the construction; appliance; heating, ventilation and air
conditioning (HVAC); container; transportation and other end
markets. Precoat has approximately 1,100 employees and operates a
network of 13 strategically located manufacturing facilities with
15 coating lines and 17 value-added processing lines.
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. Certain factors could
affect the outcome of the matters described herein. This press
release may contain forward-looking statements that involve risks
and uncertainties including, but not limited to, changes in
customer demand for our products and services, including demand by
the power generation markets, electrical transmission and
distribution markets, the industrial markets, and the metal
coatings markets. In addition, within each of the markets we serve,
our customers and our operations could potentially continue to be
adversely impacted by the ongoing COVID-19 pandemic, including
governmental issued mandates regarding the same. We could also
experience additional increases in labor costs, components and raw
materials, including zinc and natural gas, which are used in our
hot dip galvanizing process; supply-chain vendor delays; customer
requested delays of our products or services; delays in additional
acquisition or disposition opportunities; currency exchange rates;
availability of experienced management and employees to implement
AZZ's growth strategy; a downturn in market conditions in any
industry relating to the products we inventory or sell or the
services that we provide; economic volatility or changes in the
political stability in the United
States and other foreign markets in which we operate; acts
of war or terrorism inside the United
States or abroad; and other changes in economic and
financial conditions. 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, 2022 and other filings with the
Securities and Exchange Commission ("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.
Non-GAAP Financial Measures
Some of the financial information and data contained in this
press release, such as adjusted EBITDA, have not been prepared in
accordance with Generally Accepted Accounting Principles in
the United States ("GAAP"). The
Company's management believes that the presentation of these
non-GAAP financial measures provides investors with a greater
transparency comparison of operating results across a broad
spectrum of companies, which provides a more complete understanding
of the Company's financial performance, competitive position and
prospects for the future. Management also believes that investors
regularly rely on non-GAAP financial measures, such as adjusted
EBITDA, to assess operating performance and that such measures may
highlight trends in the Company's business that may not otherwise
be apparent when relying on financial measures calculated in
accordance with GAAP.
While the Company believes these non-GAAP measures are useful in
evaluating the Company's performance, this information should be
considered as supplemental in nature and not as a substitute for or
superior to the related financial information prepared in
accordance with GAAP. Additionally, these non-GAAP financial
measures may differ from similar measures presented by other
companies.
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SOURCE AZZ Inc.