FORT WORTH, Texas, March13, 2018 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), a global provider of metal coatings services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution and industrial markets, announced today it has won the bid to acquire certain assets through a 363 bankruptcy sale process, from Lectrus Corporation, a privately-held Tennessee corporation, that designs and manufactures custom metal enclosures and provides electrical and mechanical integration. The Chattanooga, Tennessee facility of Lectrus is included in the assets acquired.
Ken Lavelle, President of AZZ's Electrical segment commented, "The opportunity to purchase certain strategic assets from Lectrus through a 363 bankruptcy sale process is a result of the consolidation that is occurring within the metal enclosure industry in the U.S., which is particularly challenging for smaller, less well-capitalized operators. AZZ is well positioned to remain an opportunistic acquirer of strategic assets that will further enhance AZZ's market share and improve operations."
The Chattanooga facility is located on a 585,000 square-foot site. The operations include a 210,000 square- foot manufacturing facility, as well as engineers, estimators, project management, fabrication, integration and sales personnel. Going forward, the facility will operate as AZZ Enclosure Systems “ Chattanooga LLC, a Delaware limited liability company, and will complement AZZ's current metal enclosure and switchgear locations in Kansas, Maryland, and Missouri. The acquisition is subject to final court approval of the Sale Order, the Asset Purchase Price Agreement and customary closing conditions. Closing is expected on, or before, March 31, 2018.
Mr. Lavelle concluded, "The Chattanooga facility will expand our market presence and advance our goal of strengthening our market position in providing custom metal enclosures and related electrical integration to utility, industrial and OEM customers. We look forward to adding the Lectrus heritage and strength of the Chattanooga operations to our AZZ Electrical business. AZZ expects the AZZ Enclosure Systems - Chattanooga facility to be accretive to earnings within the first year of operation."
About Lectrus Corporation
Founded in 1968, Lectrus Corporation is an industry leader in the design and manufacture of custom metal enclosures and related electrical and mechanical integration. The company serves a blue-chip base of businesses that operate within the oil and gas, power generation, transmission and distribution, petrochemical, and alternative energy markets. Lectrus's custom-designed and fabricated enclosures serve a variety of end-uses, including equipment centers, generator enclosures, operator centers, and enclosures that protect electrical power and mechanical control systems.
About AZZ Inc.
AZZ Inc. is a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial in protecting metal and electrical systems used to build and enhance the world's infrastructure. AZZ's Metal Coatings Segment is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ's Energy 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 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. This release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand and response to products and services offered by AZZ, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the hot dip galvanizing markets; prices and raw material cost, including zinc and natural gas which are used in the hot dip galvanizing process; changes in the political stability and economic conditions of the various markets that AZZ serves, foreign and domestic, customer requested delays of shipments, acquisition opportunities, currency exchange rates, adequacy of financing, and availability of experienced management and employees to implement AZZ's growth strategy. 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, 2017 and other filings with the 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.
Paul Fehlman, Senior Vice President “Finance and CFO
AZZ Inc. 817-810-0095
Joe Dorame, Robert Blum or Joe Diaz
SOURCE AZZ Inc.