AZZ Inc. Announces Definitive Agreement by AVAIL Infrastructure Solutions to Divest Electrical Products Business
AZZ Inc. (NYSE: AZZ) announced that AVAIL Infrastructure Solutions has agreed to sell its Electrical Products Group to nVent Electric plc for $975 million. The transaction, expected to close in first half of 2025, represents an enterprise value multiple of approximately 12.5x trailing twelve-month EBITDA.
AZZ, which holds a 40% non-controlling interest in AVAIL, will maintain its ownership stake in AVAIL's remaining Industrial Lighting and Welding Solutions Businesses, representing about 30% of pre-transaction group revenue. The company plans to use proceeds to reduce debt or fund potential M&A activity.
The divestiture aligns with AZZ's strategy to become a focused provider of metal coating solutions. The company maintains its fiscal year 2026 earnings guidance, expecting interest savings to offset the reduction in joint venture equity income.
AZZ Inc. (NYSE: AZZ) ha annunciato che AVAIL Infrastructure Solutions ha accettato di vendere il suo Electrical Products Group a nVent Electric plc per 975 milioni di dollari. La transazione, prevista per chiudere nella prima metà del 2025, rappresenta un valore aziendale multiplo di circa 12,5 volte l'EBITDA degli ultimi dodici mesi.
AZZ, che detiene un 40% di interesse non di controllo in AVAIL, manterrà la sua partecipazione nelle rimanenti attività di Industrial Lighting e Welding Solutions di AVAIL, che rappresentano circa il 30% del fatturato del gruppo prima della transazione. L'azienda prevede di utilizzare i proventi per ridurre il debito o finanziare potenziali attività di M&A.
La dismissione è in linea con la strategia di AZZ di diventare un fornitore specializzato di soluzioni di rivestimento metallico. L'azienda conferma le previsioni di utili per l'anno fiscale 2026, aspettandosi che i risparmi sugli interessi compensino la riduzione dei redditi da joint venture.
AZZ Inc. (NYSE: AZZ) anunció que AVAIL Infrastructure Solutions ha acordado vender su Electrical Products Group a nVent Electric plc por 975 millones de dólares. Se espera que la transacción se cierre en la primera mitad de 2025 y representa un múltiplo de valor empresarial de aproximadamente 12,5 veces el EBITDA de los últimos doce meses.
AZZ, que posee un 40% de interés no controlador en AVAIL, mantendrá su participación en las restantes actividades de Industrial Lighting y Welding Solutions de AVAIL, que representan alrededor del 30% de los ingresos del grupo antes de la transacción. La compañía planea utilizar los ingresos para reducir la deuda o financiar posibles actividades de M&A.
La desinversión está alineada con la estrategia de AZZ de convertirse en un proveedor enfocado en soluciones de recubrimiento metálico. La compañía mantiene su guía de ganancias para el año fiscal 2026, esperando que los ahorros en intereses compensen la reducción de los ingresos por joint venture.
AZZ Inc. (NYSE: AZZ)는 AVAIL Infrastructure Solutions가 nVent Electric plc에 9억 7500만 달러에 Electrical Products Group을 판매하기로 합의했다고 발표했습니다. 이 거래는 2025년 상반기에 마무리될 것으로 예상되며, 최근 12개월 EBITDA의 약 12.5배에 해당하는 기업 가치를 나타냅니다.
AZZ는 AVAIL에 40% 비지배 지분을 보유하고 있으며, AVAIL의 남은 Industrial Lighting 및 Welding Solutions 사업에 대한 소유권을 유지할 것이며, 이는 거래 전 그룹 수익의 약 30%를 차지합니다. 회사는 수익금을 부채를 줄이거나 잠재적인 M&A 활동을 위한 자금으로 사용할 계획입니다.
이번 매각은 AZZ의 금속 코팅 솔루션 전문 공급업체로 거듭나려는 전략과 일치합니다. 회사는 2026 회계연도 수익 전망을 유지하며, 이자 절감이 합작 투자 지분 수익 감소를 상쇄할 것으로 기대하고 있습니다.
AZZ Inc. (NYSE: AZZ) a annoncé qu'AVAIL Infrastructure Solutions a accepté de vendre son Electrical Products Group à nVent Electric plc pour 975 millions de dollars. La transaction, qui devrait se concrétiser au cours de la première moitié de 2025, représente un multiple de valeur d'entreprise d'environ 12,5 fois l'EBITDA des douze derniers mois.
AZZ, qui détient un 40% d'intérêt non contrôlant dans AVAIL, conservera sa participation dans les activités restantes d'Industrial Lighting et de Welding Solutions d'AVAIL, représentant environ 30% des revenus du groupe avant la transaction. L'entreprise prévoit d'utiliser les produits de la vente pour réduire sa dette ou financer d'éventuelles activités de fusion et acquisition.
La cession s'inscrit dans la stratégie d'AZZ de devenir un fournisseur spécialisé en solutions de revêtement métallique. L'entreprise maintient ses prévisions de bénéfices pour l'exercice fiscal 2026, s'attendant à ce que les économies d'intérêts compensent la réduction des revenus des coentreprises.
AZZ Inc. (NYSE: AZZ) gab bekannt, dass AVAIL Infrastructure Solutions zugestimmt hat, ihre Electrical Products Group für 975 Millionen US-Dollar an nVent Electric plc zu verkaufen. Die Transaktion, die in der ersten Hälfte von 2025 abgeschlossen werden soll, repräsentiert ein Unternehmenswert-Multiple von etwa 12,5x des EBITDA der letzten zwölf Monate.
AZZ, das ein 40% nicht beherrschendes Interesse an AVAIL hält, wird seinen Anteil an den verbleibenden Geschäftsbereichen Industrial Lighting und Welding Solutions von AVAIL beibehalten, die etwa 30% des Umsatzes der Gruppe vor der Transaktion ausmachen. Das Unternehmen plant, die Erlöse zur Verringerung von Schulden oder zur Finanzierung potenzieller M&A-Aktivitäten zu verwenden.
Die Veräußerung steht im Einklang mit der Strategie von AZZ, ein fokussierter Anbieter von Metallbeschichtungslösungen zu werden. Das Unternehmen hält an seiner Gewinnprognose für das Geschäftsjahr 2026 fest und erwartet, dass die Zinsersparnisse den Rückgang der Erträge aus Joint Ventures ausgleichen werden.
- Significant debt reduction potential from $975 million transaction proceeds
- 12.5x EBITDA multiple indicates strong valuation for the divested business
- Strategic focus enhancement on core metal coating solutions business
- Interest savings expected to offset reduction in joint venture equity income
- Reduction in joint venture equity income expected
- Decreased business diversification after divestiture
- Remaining AVAIL businesses represent only 30% of pre-transaction revenue
Insights
AZZ's announcement regarding AVAIL Infrastructure Solutions' $975 million divestiture of its Electrical Products Group to nVent represents a significant strategic transaction with strong financial implications. The 12.5x EBITDA valuation multiple indicates premium pricing for these assets, suggesting effective value creation for AZZ's 40% stake in the joint venture.
This transaction accelerates AZZ's strategic transformation into a focused metal coating solutions provider while simultaneously strengthening its balance sheet. Management's indication that they'll use proceeds for debt reduction or potential M&A activity provides dual pathways for value creation - either through improved financial health or strategic growth investments in their core business.
Particularly noteworthy is management's confidence that the reduction in joint venture equity income will be offset by interest savings, enabling them to maintain fiscal 2026 earnings guidance despite this material change to their business composition. The statement that "debt reduction will be significantly higher than announced" suggests substantial balance sheet improvement beyond previous market expectations.
This deal effectively streamlines AZZ's business model while providing capital flexibility, potentially allowing for multiple expansion as the company becomes a purer-play in the metal coating sector. The remaining 40% interest in AVAIL's Industrial Lighting and Welding Solutions businesses preserves some diversification while maintaining strategic focus.
Following the sale, AZZ will continue to own a
Tom Ferguson, Chief Executive Officer of AZZ, commented, "The agreement to divest the Electrical Products Group within AVAIL to nVent represents the continued transition of AZZ into a focused industry leading provider of metal coating solutions. This significant value adding transaction reflects the strong partnership between AZZ and Fernweh, and the continuation of the original vision Fernweh's CEO, Nick Santhanam and I shared three years ago. AZZ will use the cash generated from this transaction to further reduce debt, or fund potential M&A activity. We will treat the gain on sale as a one-time adjustment to Net Income and EPS and believe the reduction in joint venture equity income will be offset by interest savings. Therefore, we will not adjust AZZ's fiscal year 2026 earnings guidance at this time, but debt reduction will be significantly higher than announced.
Nick Santhanam, Chief Executive Officer of Fernweh Group, commented, "The decision to divest the Electrical Products Group is a testament to our experience with industrial technology transformations across domains and expertise across critical functional areas. We are confident that nVent is the right owner to support the Electrical Products Group's continued growth and success. nVent is known for their strength in the electrical infrastructure market and has built a strong reputation in the industry. The acquisition by nVent is expected to bring new opportunities for the business, its employees, and its customers. I want to congratulate the dedicated management team and employees at the Electrical Products Group and wish them continued success as they join the nVent team."
About AZZ Inc.
AZZ Inc. is a global provider of galvanizing and a variety of metal coating solutions, coil 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 Precoat Metals Segment is a leading provider of aesthetic and corrosion protective coatings to the North American steel and aluminum coil market. AZZ's Infrastructure Solutions segment (AIS) 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 Fernweh Group LLC
Fernweh is a principal investment firm launched by leaders from global institutions, who have extensive prior experience working with companies in the industrial and industrial technology sectors on strategy, M&A, and operational transformation. Fernweh believes that companies in the mid- and small-cap industrial and industrial technology sectors are the engine of the economy. By tailoring cutting-edge 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.
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
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.
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 solutions, including demand by the construction markets, the industrial markets, and the metal coatings markets. 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 solutions; delays in additional acquisition opportunities; an increase in our debt leverage and/or interest rates on our debt, of which a significant portion is tied to variable interest 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 solutions that we provide; economic volatility, including a prolonged economic downturn or macroeconomic conditions such as inflation or changes in the political stability in
Company Contact:
David Nark, Senior Vice President of Marketing, Communications, and Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com
Investor Contact:
Sandy Martin / Phillip Kupper
Three Part Advisors
(214) 616-2207
www.threepa.com
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SOURCE AZZ, Inc.
FAQ
What is the value of AVAIL's Electrical Products Group sale to nVent?
How will AZZ use the proceeds from the Electrical Products Group sale?
What percentage of AVAIL will AZZ retain after the divestiture?
Will the Electrical Products Group sale affect AZZ's FY2026 earnings guidance?
When is the AZZ-AVAIL divestiture expected to close?
