AZZ Inc. Announces Acquisition of Acme Galvanizing, Inc.

Rhea-AI Summary

AZZ Inc. (NYSE: AZZ) announced the acquisition of Acme Galvanizing, Inc., a century-old provider of hot-dip galvanizing and zinc electroplating services, based in Milwaukee, Wisconsin. Although transaction terms were undisclosed, AZZ anticipates the acquisition will contribute positively to earnings within its first operational year. The acquisition enhances AZZ's Midwest presence by adding a facility with advanced automated zinc plating lines and a galvanizing kettle, expanding its hot-dip galvanizing network to 40 sites across North America.

Positive

• Acquisition expected to be accretive to earnings within the first year.
• Increases AZZ's hot-dip galvanizing network to 40 sites in North America.
• Enhances metal coating services in the Midwest with advanced plating technology.
• Strengthens AZZ's customer base and operational capabilities.

Negative

• None.

FORT WORTH, Texas, Jan. 4, 2021 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services, announced today that it has acquired all the assets of Acme Galvanizing, Inc. ("Acme"), a privately held hot-dip galvanizing and zinc electroplating company based in Milwaukee, Wisconsin. For more than 100 years, Acme has been providing quality metal coating services to the post-fabrication steel market. Terms of the transaction were not disclosed. AZZ expects the acquisition will be accretive to earnings within the first year of operation.

Through the acquisition, AZZ adds a well-established successful metal coatings operation with a diverse customer base, which operates in an 80,000 square foot facility located in Milwaukee, Wisconsin.  Going forward, AZZ intends to operate the new facility as AZZ Galvanizing and Plating – Milwaukee, and further extends AZZ's ability to support customers in the Midwest. The new metal coatings plant will be integrated into AZZ's existing network of hot-dip galvanizing plants, increasing its total hot-dip galvanizing network to 40 sites in North America.

Bryan L. Stovall, President & COO of AZZ Metal Coatings, commented, "We are pleased with the synergistic acquisition of Acme, as we continue to execute our strategic plan to drive profitable growth and strengthen our overall Metal Coatings business. With the acquisition of Acme, AZZ enhances its scope of metal coating services in the Midwest with the addition of four advanced fully automated zinc plating lines and a totally enclosed galvanizing kettle. We welcome Acme's employees and customers to AZZ and look forward to a seamless integration with uninterrupted customer service."

About Acme Galvanizing, Inc.

Founded in 1919, Acme Galvanizing, Inc., is an industry-leading provider of state-of-the-art zinc coating processes that include electroplating and hot dip galvanizing. Acme operates a quality management system that is ISO 9001-2015 certified.

About AZZ Inc.

AZZ Inc. is a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial markets. AZZ Metal Coatings is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ Infrastructure Solutions 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. 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 be adversely impacted by the ongoing COVID-19 pandemic.  We could also experience fluctuations in prices and raw material cost, including zinc and natural gas which are used in the hot dip galvanizing process; supply-chain vendor delays ; customer requested delays of our products or services; delays in additional acquisition 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 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 29, 2020 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.

Contact:
David Nark, Senior Vice President of Marketing, Communications, and Investor Relations
AZZ Inc. 817-810-0095
Internet: azz.com

Lytham Partners
602-889-9700
Joe Dorame, Robert Blum or Joe Diaz
Internet:
www.lythampartners.com

View original content to download multimedia:http://www.prnewswire.com/news-releases/azz-inc-announces-acquisition-of-acme-galvanizing-inc-301200012.html

SOURCE AZZ Inc.

FAQ

What is the significance of AZZ's acquisition of Acme Galvanizing?

The acquisition significantly enhances AZZ's operational capacity in the Midwest and is expected to improve earnings within the first year.

How many sites does AZZ now operate for hot-dip galvanizing after acquiring Acme?

After acquiring Acme, AZZ now operates a total of 40 hot-dip galvanizing sites across North America.

What types of services does Acme Galvanizing provide?

Acme Galvanizing specializes in hot-dip galvanizing and zinc electroplating for the post-fabrication steel market.

When was the acquisition of Acme Galvanizing announced?

The acquisition was announced on January 4, 2021.

Will the acquisition of Acme Galvanizing impact AZZ's earnings?

Yes, AZZ expects the acquisition to be accretive to earnings within the first year of operation.