Fort Worth-based AZZ incorporated (NYSE: AZZ), announced Friday it was acquiring the assets of U.S. Galvanizing LLC, a provider of steel corrosion coating services, and a wholly-owned subsidiary of Trinity Industries (TRN).
With the purchase of these assets AZZ Galvanizing Services has increased its network of hot-dip galvanizing plants to 42 sites in the United States and Canada. U.S. Galvanizing generated revenue of $34 million in sales on a trailing twelve-month basis as of March 31, 2015, according to AZZ.
No price was given for the transaction.
The acquisition of the U.S. Galvanizing assets includes six galvanizing facilities located in Hurst, Kennedale, Big Spring, San Antonio, Morgan City, Louisiana; and Kosciusko, Mississippi. Additionally, the transaction includes Texas Welded Wire, a secondary business integrated within U.S. Galvanizing’s Hurst facility. As part of this acquisition, AZZ and Meyer Steel Structures, a leading manufacturer of steel structures for electricity transmission and distribution, and a wholly-owned subsidiary of Trinity Industries, have entered into a long-term supply and service agreement where AZZ will be the primary supplier of hot-dip galvanizing services for Meyer Steel Structures.
Tom Ferguson, president and chief executive officer of AZZ incorporated, commented in the news release: “This is an important strategic acquisition for AZZ, as we expand our network of galvanizing plants and solidify our relationship with Trinity. Additionally, this further expands our penetration in the states of Texas, Louisiana and Mississippi and it further solidifies our position as the leading North American hot-dip galvanizing provider to the steel fabrication industry for corrosion protection.”