AZZ Inc. Announces the Acquisition of Steel Creek Galvanizing Company, LLC
AZZ Inc. (NYSE: AZZ) has announced the acquisition of Steel Creek Galvanizing Company, located in Blacksburg, South Carolina. The deal aims to enhance AZZ's galvanizing capabilities in the Southeast, increasing its total operations to 40 galvanizing plants across North America. The new facility features one of the largest galvanizing kettles in the U.S., supporting large steel structures for critical infrastructure. AZZ anticipates the acquisition will be accretive to earnings within the first year, strengthening its market position and expanding its customer service footprint.
- Acquisition expected to be accretive to earnings within the first year.
- Expansion of galvanizing operations into the Southeast market.
- Increased operational capacity with one of the largest galvanizing kettles in the U.S.
- None.
FORT WORTH, Texas, Jan. 3, 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 all the assets of Steel Creek Galvanizing Company, LLC ("Steel Creek"), a privately held hot-dip galvanizing company based in Blacksburg, South Carolina. Terms of the transaction were not disclosed. AZZ expects the acquisition will be accretive to earnings within the first year of operation.
AZZ will operate the new facility as AZZ Galvanizing – South Carolina and further extends AZZ's ability to support customers in the Southeast region of the United States. The new galvanizing facility will be integrated into AZZ's existing network of hot-dip galvanizing plants, increasing its total galvanizing network to 40 sites in North America.
Steel Creek provides hot-dip galvanizing to customers located in the Southeast from its 83,000 square foot facility that features one of the largest galvanizing kettles in the United States. With a 25 ton crane system and a 55 foot long kettle, Steel Creek has the capability to galvanize the largest steel structures needed to support critical infrastructure. Steel Creek's strategic location provides the ability to serve key markets in the Southeast, including Charlotte, Greenville, Spartanburg, Asheville, Columbia, Greensboro and Atlanta. Steel Creek was also a strong sustainability target for AZZ since its business practices demonstrate a commitment to being a good corporate citizen and quality employer, and it has made significant investments in environmentally friendly equipment specifically designed to protect the community and its employees.
Bryan L. Stovall, President & COO - Metal Coatings, commented, "We are pleased to add Steel Creek's galvanizing operations and expand our geographical coverage into the Southeast region. This strategic acquisition provides AZZ the opportunity to broaden our metal coating offerings in new markets and strengthens our network of metal coatings facilities. We welcome Steel Creek's employees and customers to AZZ and look forward to a seamless integration with uninterrupted industry-leading customer service."
About Steel Creek Galvanizing Company, LLC
Founded in 2019, Steel Creek is a leading hot-dip galvanizing company located in Blacksburg, South Carolina. The company's galvanizing operations include one of the largest kettles in the United States. Steel Creek serves several customers located in both North and South Carolina, as well as Georgia. The company's mission is to exceed its customers' expectations by providing defect-free products and services in a timely manner. To achieve this mission, Steel Creek is continuously improving its processes, products, and services and has adopted the highest quality industry standards.
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 and other industries. 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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