Signs agreement with Denmark-based Euro Steel
Enables Renewable Energy management team to focus exclusively on growing the solar business
Reflects company’s strategy to focus on businesses that provide global capabilities, scalability and long-term shareholder value
OMAHA, Neb., November 14, 2022--(BUSINESS WIRE)--Valmont® Industries, Inc. (NYSE: VMI), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today announced that the Company has entered into a definitive agreement to sell its offshore wind business to Euro Steel, a Denmark-based supplier of steel products to the European wind market. The offshore wind business, known as Valmont SM®, was acquired in 2014. It is reported in the Renewable Energy product line in the Company’s Infrastructure segment and expected to generate approximately $100 million of revenue in fiscal 2022. The Company plans to utilize the net cash proceeds from this transaction toward repayment of short-term borrowings.
"A critical aspect of our strategy is to focus our businesses in areas where we see the highest potential for global growth, scalability and value creation," said Stephen G. Kaniewski, Valmont President and CEO. "This transaction enables our Renewable Energy management team to focus exclusively on expanding our solar business, which has tremendous growth opportunities globally and better aligns with our strategy of delivering long-term value to our shareholders. I want to thank our Valmont SM associates for successfully facilitating the efforts to reshape the business toward more profitable growth. We are very pleased that the team will be working with a strong partner who has a shared vision to invest and grow the business to meet increasing market demand for larger turbine and structure sizes."
The transaction will generate a GAAP diluted loss per share of approximately ($1.20) to ($1.45), nearly all due to a non-cash accumulated currency translation loss. The Company expects the transaction, which is subject to customary closing conditions, to be completed in fourth quarter 2022 and plans to reflect the EPS impact as a non-GAAP adjustment to its fourth quarter and fiscal year 2022 net earnings. No further financial details are being provided at this time.
Founded in 1988, Euro Steel Denmark supplies steel plates, beams, and other products to turbine manufacturers in European wind markets. For more information, visit their website at www.euro-steel.eu/en.
About Valmont Industries, Inc.
For over 75 years, Valmont® has been a global leader in creating vital infrastructure and advancing agricultural productivity. Today, we remain committed to doing more with less by innovating through technology. Learn more about how we’re Conserving Resources. Improving Life.® at valmont.com.
Concerning Forward-Looking Statements
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management’s perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, the continuing and developing effects of the pandemic including the effects of the outbreak on the general economy and the specific economic effects on the Company’s business and that of its customers and suppliers, risk factors described from time to time in Valmont’s reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.
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