FORT WORTH, TX, May 13, 2022 /PRNewswire/ — AZZ Inc. (“AZZ” or the “Company”) (NYSE: AZZ)a global provider of galvanizing and metal coating solutions, welding solutions, specialist electrical equipment and highly technical services for the maintenance and construction of critical infrastructure, today announced that it has finalized the previously announced acquisition of the Precoat Metals (“Precoat”) business division of Sequa Corporation (“Sequa”), a portfolio company of global investment firm Carlyle (NASDAQ: CG), for a purchase price of approximately $1.28 billion.
Based at St. Louis, MissouriPrecoat 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 coils primarily used in construction; device; 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 plants with 15 coating lines and 17 value-added processing lines. For the twelve months ended December 31, 2021Precoat generated sales of approximately $700 million and an adjusted EBITDA of around $137 million.
Tom Ferguson, Chairman and CEO of AZZ, said, “Today, we welcome Precoat’s 1,100 employees to the AZZ family and begin the work of rapidly integrating Precoat into AZZ while leveraging the opportunities created by this acquisition. As I have said before, this acquisition significantly expands our metallic coatings offering, creating an unparalleled scale and breadth of solutions in the prepainted and post-fabrication coatings markets. We believe the continuous coating market will provide sustainable future growth for AZZ, and we are excited to add a talented management team that shares values as well as a focus on employees and customers as we do at AZZ. This acquisition is consistent with our previously communicated strategy which prioritizes North American coatings targets with strong strategic fit that are accretive in the first year of operations, and it is a testament to our commitment to generate profitable growth. This acquisition represents AZZ’s continued transition from a holding company to a specialist provider of coating and galvanizing services for critical applications.”
Kurt RussellPresident of Precoat, said, “This is an exciting milestone for Precoat Metals as we continue our 60-year evolution. As the Precoat business transitions from a non-core asset to a paramount strategic priority within AZZ, Precoat will have the resources necessary to pursue our core growth strategies to serve our customers and, in turn, accelerate the growth of sales and profits of AZZ. »
About AZZ Inc.
AZZ Inc. is a global supplier of galvanizing and a variety of metal coating solutions, welding solutions, specialty electrical equipment and highly technical services to a wide range of markets including, but not limited to limit, 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, hot-dip galvanizing, powder coating, anodizing and electroplating. plating, for the North American steel fabrication industry. AZZ’s Infrastructure Solutions segment is dedicated to providing safe and reliable transmission of electricity from generation sources to end customers, and automated weld overlay solutions for corrosion and corrosion mitigation. erosion to critical infrastructure in energy and waste management markets worldwide.
About Pre-Coated Metals
Founded in 1961 and based in St. Louis, MissouriPrecoat 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 coils primarily used in construction; device; 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 plants with 15 coating lines and 17 value-added processing lines.
Safe Harbor Statement
Certain statements below regarding 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”, “continues” or the negative form of these terms or any other terminology comparable. These forward-looking statements are based on currently available competitive, financial and economic data and management’s beliefs and assumptions regarding future events. These forward-looking statements are inherently uncertain and investors should recognize that actual results may differ from those expressed or implied by 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 from production markets. markets, electricity transmission and distribution markets, industrial markets and metal coatings markets. Additionally, within each of the markets we serve, our customers and operations could potentially continue to be impacted by the ongoing COVID-19 pandemic, including government-issued mandates in this regard. We may also incur additional cost increases for labor, 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 for our products or services; delays in additional acquisition or divestiture opportunities; exchange rate; the availability of experienced management and employees to execute AZZ’s growth strategy; a decline in market conditions in any industry related to the products we stock or sell or the services we provide; economic volatility or changes in political stability United States and other foreign markets in which we operate; acts of war or terrorism within United States or abroad; and other changes in economic and financial conditions. AZZ 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 documents filed with the Securities and Exchange Commission (“SEC”), available for inspection on AZZ’s website at www.azz.com and on the SEC’s website at www.sec.gov. You are urged to carefully consider these factors when evaluating the forward-looking statements contained herein and you 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 undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
Certain information and financial data contained in this press release, such as Adjusted EBITDA, have not been prepared in accordance with generally accepted accounting principles in United States (“GAAP”). The Company’s management believes that the presentation of these non-GAAP financial measures provides investors with a more transparent comparison of the results of operations of a wide variety of companies, allowing for a more complete understanding of financial performance, the Company’s competitive position and future prospects. . Management also believes that investors routinely 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 could otherwise not be apparent when based on financial measures calculated in accordance with GAAP. .
Although the Company believes that these non-GAAP measures are useful in evaluating the Company’s performance, this information should be considered supplemental in nature and not a substitute for or superior to 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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