FORT WORTH, Texas, Oct. 26, 2020 /PRNewswire/ -- AZZ Inc.
(NYSE:AZZ), a global provider of metal coating solutions, welding
solutions, specialty electrical equipment and highly engineered
services, today announced that it has completed the divestiture of
its AZZ SMS LLC ("SMS" or "Field Services") operating business unit
to Mid-State Machine and Fabricating Corporation ("Mid-State
Industrial Maintenance" or "Mid-State"), a privately held company
based in Lakeland, Florida.
Mid-State acquired the SMS business and assumed a 26,155 square
foot facility located in St. Petersburg,
Florida. Terms of the transaction were not disclosed and are
subject to customary terms and conditions.
SMS was acquired by AZZ in 2013 as part of the acquisition of
Aquilex Specialty Repair and Overhaul LLC ("Aquilex SRO"). As part
of its recently disclosed earnings announcement, AZZ recorded a
non-cash charge related to the divestiture of SMS to fiscal year
2021 second quarter, which ended on August
31, 2020. AZZ reported the charge related to the impairment
in its Form 10-Q for the second quarter, which was filed with the
Securities and Exchange Commission on October 13, 2020. AZZ expects a nominal
revenue impact of approximately $35
million and anticipates the deal to be cash positive for the
Company.
Tom Ferguson, Chief Executive
Officer of AZZ, commented, "The divesture of SMS is in line with
our strategic plan to restructure our portfolio to focus on growth
within our core businesses. We are pleased to have reached an
agreement with Mid-State to acquire SMS, while maintaining
uninterrupted service to the customers of SMS, and employment
for the SMS work force. We are focused on activities that will
drive higher returns on invested capital within our core businesses
for long-term margin expansion and growth."
About Mid-State Machine and Fabricating
Mid-State Industrial Maintenance is a leading provider of
on-site and off-site industrial maintenance and service solutions.
Headquartered in Lakeland,
Florida, Mid-State serves as an outsourced maintenance and
repair services provider to customers in the chemical processing,
phosphate mining, power generation, and building products
industries throughout the southeastern United States.
About AZZ Inc.
AZZ is a global provider of metal coating solutions, 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
Metal Coatings is a leading provider of metal finishing solutions
for corrosion protection, including hot dip galvanizing to the
North American steel fabrication industry. AZZ Infrastructure
Solutions (formerly Energy) 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. 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 be
adversely impacted by the ongoing COVID-19 pandemic. We could
also experience fluctuations in prices and raw material cost,
including zinc and natural gas which are used in the hot dip
galvanizing process; supply-chain vendor delays; customer requested
delays of our products or services; delays in additional
acquisition opportunities; currency exchange rates; adequacy of
financing; 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 29, 2020 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.
Company Contact:
David Nark,
Senior Vice President of Marketing, Communications and
Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com
Investor Contact:
Joe
Dorame, Managing Partner
Lytham Partners
(602) 889-9700
www.lythampartners.com
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SOURCE AZZ Inc.