AZZ Inc.
Fort Worth-based AZZ Inc. (NYSE: AZZ) announced on Monday that it had entered into an agreement to acquire all the assets of Steel Creek Galvanizing Company LLC, a privately held hot-dip galvanizing company based in Blacksburg, South Carolina.
Terms of the transaction were not disclosed. AZZ expects the acquisition will be accretive to earnings within the first year of operation, the company announced in a news release, which included a Safe Harbor statement concerning “forward-looking statements.”
AZZ will operate the new facility as AZZ Galvanizing—South Carolina and further extends AZZ’s ability to support customers in the southeast U.S. The new galvanizing facility will be integrated into AZZ’s existing network of hot-dip galvanizing plants, increasing its total galvanizing network to 40 sites in North America.
AZZ is a global provider of galvanizing and metal coating solutions, welding solutions, specialty electrical equipment, and highly engineered services for maintaining and building critical infrastructure.
“We are pleased to add Steel Creek’s galvanizing operations and expand our geographical coverage into the southeast region,” says Bryan L. Stovall, AZZ President and COO of Metal Coatings, in the release. “This strategic acquisition provides AZZ the opportunity to broaden our metal coating offerings in new markets and strengthens our network of metal coatings facilities. We welcome Steel Creek’s employees and customers to AZZ and look forward to a seamless integration with uninterrupted industry-leading customer service.”
Steel Creek provides hot-dip galvanizing to customers in the Southeast from its 83,000-square-foot facility that features one of the largest galvanizing kettles in the U.S. With a 25-ton crane system and a 55-foot-long kettle, Steel Creek has the capability to galvanize the largest steel structures needed to support critical infrastructure.
Hot-dip galvanizing has been utilized for more than 250 years to protect steel and iron from corrosion. The process, which has evolved over the years, entails dipping fabricated steel into a kettle of molten zinc. The iron in the steel reacts with the zinc to form a tightly bonded alloy coating which protects the steel from corrosion. Galvanized steel has a significantly lower life-cycle cost than other materials such as painted steel or epoxy coated surfaces, and requires no coating maintenance over its service life.
According to AZZ’s news release, Steel Creek’s strategic location provides the ability to serve key markets in the Southeast, including Charlotte, Greenville, Spartanburg, Asheville, Columbia, Greensboro, and Atlanta.
“Steel Creek was also a strong sustainability target for AZZ since its business practices demonstrate a commitment to being a good corporate citizen and quality employer, and it has made significant investments in environmentally friendly equipment specifically designed to protect the community and its employees.”