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AZZ Inc. Announces Agreement to Purchase Tennessee Galvanizing Inc.

FORT WORTH, Texas, Feb. 4, 2019 /PRNewswire/ -- AZZ Inc. (AZZ), a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services, today announced it has reached a preliminary agreement to acquire Tennessee Galvanizing Inc., a privately held company, based in Jasper, Tennessee.  Tennessee Galvanizing is metal coatings company with four operating galvanizing lines, including centrifuge, rod, conveyer and a 42-foot structural kettle.  Terms of the transaction were not disclosed and are subject to customary terms and conditions. The transaction is expected to close in the spring of 2019, pending completion of final due diligence activities. The facility will operate as AZZ Galvanizing – Chattanooga and will retain key managerial personnel and hourly employees currently employed at the facility.

AZZ Inc. is a global provider of metal coatings services, welding solutions, specialty electrical equipment and highly engineered services. (PRNewsfoto/AZZ Inc.)

Bryan Stovall, Senior Vice President of AZZ Metal Coatings, said, "The purchase of Tennessee Galvanizing expands our network of metal coatings facilities in North America that are able to provide a broad spectrum of metal coating services – from small piece goods to large components.  We look forward to ensuring a smooth integration into the AZZ family, with uninterrupted customer service and continued employment for their employees. We believe that existing and potential customers served by AZZ Galvanizing – Chattanooga will benefit from AZZ's economies of scale." 

The acquisition will increase AZZ's Metal Coatings network of hot-dip galvanizing plants to 41 sites in the United States and Canada. The Company expects AZZ Galvanizing – Chattanooga to be accretive to earnings within the first year of operation.

About Tennessee Galvanizing Inc.

Founded in 1991 Tennessee Galvanizing Inc., located in Southeast Tennessee, is a leading regional provider of galvanizing services.  The Company operates four distinct galvanizing lines in its Jasper, Tennessee location, including centrifuge, rod, conveyor, and traditional hot-dip galvanizing. 

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 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 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. 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 metal coatings 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, 2018 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.

Contact:

Paul Fehlman, Senior Vice President - Finance and CFO


AZZ Inc. 817-810-0095


Internet:  www.azz.com




Lytham Partners 602-889-9700


Joe Dorame, Robert Blum or Joe Diaz


Internet: www.lythampartners.com

 

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