FORT
WORTH, Texas, Oct. 3, 2022
/PRNewswire/ -- AZZ Inc. ("AZZ" or the "Company") (NYSE:
AZZ), and Fernweh Group LLC ("Fernweh"), jointly announced
today that as of Friday evening, September
30, 2022 they completed the previously announced transaction
whereby AZZ contributed its AZZ Infrastructure Solutions
Segment1 ("AIS") to AIS Investment Holdings LLC (the
"AIS JV") and sold a 60% interest in the AIS JV to Fernweh at an
implied enterprise value of $300
million. AZZ anticipates approximately $228 million of cash proceeds, subject to certain
customary purchase price adjustments, and will use $210 million to pay down its Term Loan B and the
balance to pay on its Revolving Credit Facility.
AIS is a leading provider of specialized products and solutions
designed to support industrial and electrical applications. AIS's
product offerings include custom switchgear, electrical enclosures,
medium and high voltage bus ducts, and explosion proof and
hazardous duty lighting. In addition, AIS focuses on extension of
life cycle for the power generation, refining and industrial
infrastructure markets, through offering automated weld overlay
solutions for corrosion and erosion mitigation. The AIS business
has approximately 1,323 employees and operates through a global
network of 20 strategically located facilities. For fiscal
year 2022, ended February 28, 2022,
AIS generated sales of approximately $375
million.
About AZZ Inc.
AZZ Inc. is a leading provider of galvanizing and a variety of
metal coating solutions and coil coating solutions to a broad range
of end-markets in North America.
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 steel fabrication industry. AZZ's Precoat
Metals Segment is a leading provider of aesthetic and corrosion
protective coatings to the steel and aluminum coil
market.
About Fernweh Group LLC
Fernweh is an investment firm led by leaders from global
institutions with prior experience working with companies in the
industrial and industrial technology sectors on strategy, M&A,
and operational transformation. Fernweh believes that the mid- and
small-cap industrial and industrial technology sectors are the
backbone of the economy and the engine for its growth. By combining
management capability, operational and strategic transformation
support, and capital for each company's unique context, history,
and needs, Fernweh aims to be a builder of businesses and create
value for all stakeholders.
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," "could" "should,"
"expects," "plans," "will," "might," "would," "projects,"
"currently," "intends," "outlook," "forecasts," "targets,"
"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.
Forward-looking statements speak only as of the date they are made
and are subject to risks that could cause them to differ materially
from actual results. 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 continuing impact of the COVID-19 pandemic, including
governmental issued mandates regarding the same in the
jurisdictions in which we operate, sell to or from whom we
purchase. 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; adequacy of
financing, 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, including a
prolonged economic downturn or macroeconomic conditions such as
inflation 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, including in Part I, Item 1A. Risk Factors, 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.
Company Contact:
David Nark, Senior Vice President of
Marketing, Communications and Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com
Investor Contact:
Joe
Dorame, Managing Partner
Lytham Partners
(602) 889-9700
www.lythampartners.com
1 Excludes AZZ Crowley Tubing
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SOURCE AZZ Inc.