AZZ Inc. Announces the Acquisition of DAAM Galvanizing Co. Ltd.
AZZ Inc. (NYSE: AZZ) announced its agreement to acquire DAAM Galvanizing Co. Ltd., a leading hot-dip galvanizing company in Canada. DAAM has a 60-year reputation for quality and safety. The acquisition is expected to enhance AZZ’s metal coating operations, increasing its galvanizing network to 42 sites across North America. AZZ anticipates the acquisition will be accretive to earnings within the first year. The integration will expand AZZ's geographical coverage in Canada, with investments in Calgary to support customers.
- Acquisition of DAAM is expected to be accretive to earnings within the first year.
- Increases AZZ's hot-dip galvanizing network to 42 sites in North America.
- Enhances geographical coverage and service offerings in Western Canada.
- None.
FORT WORTH, Texas, March 1, 2022 /PRNewswire/ -- AZZ Inc. (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, announced today that it has entered into an agreement to acquire DAAM Galvanizing Co. Ltd. ("DAAM"), a privately held hot-dip galvanizing company based in Edmonton, Alberta Canada. Terms of the transaction were not disclosed.
DAAM has a 60-year reputation of industry excellence, commitment to continuous improvement, safety, quality and customer satisfaction. AZZ expects the acquisition will be accretive to earnings within the first year of operation.
Through the acquisition, AZZ will add Western Canada's most trusted provider of hot-dip galvanizing services to its well-established and successful metal coatings operation. DAAM currently operates two galvanizing facilities in Canada; one located in Edmonton, Alberta and a second in Saskatoon, Saskatchewan, as well as a service depot in Calgary, Alberta. Upon closing, AZZ intends to operate the new facilities as AZZ Galvanizing – Edmonton and AZZ Galvanizing – Saskatoon, and make further investments in Calgary to extend AZZ's ability to support customers in Central and Western Canada. The new metal coatings plants will be integrated into AZZ's existing network of hot-dip galvanizing plants, increasing its total hot-dip galvanizing network to 42 sites in North America.
Bryan L. Stovall, President & COO of AZZ Metal Coatings, commented, "With a long and successful operating history of more than 60 years, we are pleased to reach an agreement to add DAAM Galvanizing to AZZ's Metal Coatings portfolio. This acquisition is a testament to our commitment to drive profitable growth and strengthen our Metal Coatings business. The addition of DAAM will expand AZZ's geographical coverage in the Northwest and enhances its scope of metal coating services in Canada. We welcome DAAM's employees and customers to AZZ and look forward to a seamless integration with uninterrupted industry-leading customer service."
About DAAM Galvanizing Co. Ltd.
Founded in 1954, DAAM Galvanizing has grown to become Western Canada's leading — and largest — lead-free galvanizing company. The Company delivers end-to-end corrosion protection solutions for steel structures that are guaranteed to last a lifetime. With a team of experts including Engineers, Quality Control/Inspectors, and Safety personnel, DAAM provides customers with unmatched value and trusted performance through a network of facilities located in Edmonton, Alberta, Saskatoon, Saskatchewan, and a depot in Calgary, Alberta.
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.
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, 2021 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.
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SOURCE AZZ Inc.
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