FORT WORTH, Texas, Feb. 11, 2020 /PRNewswire/ -- AZZ
Inc. (NYSE:AZZ), a global provider of metal coating services,
welding solutions, specialty electrical equipment and highly
engineered services, today announced that it has entered into an
agreement to divest its Nuclear Logistics LLC ("NLI") operating
business unit to Paragon Energy Solutions, LLC ("Paragon").
Terms of the transaction were not disclosed, and are subject to
customary closing terms and conditions, including obtaining
consents on certain governmental contracts. The transaction is
expected to close by the end of the fourth quarter of AZZ's fiscal
year 2020. Upon closing of the transaction, the Company
expects to record a one-time, non-cash charge related to the
divestiture of NLI which would be moderately offset by the
realization of deal-related tax benefits to the current fiscal year
2020.
Tom Ferguson, Chief Executive
Officer of AZZ, commented, "We are pleased to have reached an
agreement to divest the NLI business with Paragon. I am convinced
that Paragon will be a great partner to the NLI customer base, as
well as a good employer for NLI's work force. We were successful in
improving NLI operational performance, but based upon a strategic
review of our assets and product portfolio, we believe the
divestment of NLI and redeployment of capital into our metal
coatings business segment creates greater growth opportunities for
AZZ. We will work with the Paragon team to affect a seamless
transition and to ensure NLI's customers receive the
industry-leading service they deserve."
"I anticipate our fiscal year 2020 operating results will remain
within the range of the previously issued revenue and earnings
guidance, without the effects of the potential non-cash charge and
related tax benefits. Additionally, we are maintaining our
recently issued guidance for fiscal year 2021 and will provide an
update, if necessary," concluded Mr. Ferguson.
About Paragon
For over 20 years Paragon has provided an unmatched commitment
to the nuclear industry's most difficult challenges with customized
solutions. Dedicated to quality, safety, and reliability, Paragon
prides itself on delivering premium products and services including
repair of I&C equipment, reverse engineered products, solving
obsolescence, commercial grade dedication / qualification,
just-in-time inventory, and innovative supply chain solutions.
Paragon is committed to the nuclear industry and providing support
to nuclear energy facilities worldwide.
About AZZ Inc.
AZZ Inc. is a global provider of metal coating solutions,
welding solutions, specialty electrical equipment and highly
engineered services to the power generation, transmission,
distribution and industrial markets. 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 future 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, 2019 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
Heather Born
Vice President, Human Resources
Paragon 865-218-8262
hborn@paragones.com
View original content to download
multimedia:http://www.prnewswire.com/news-releases/azz-inc-announces-the-divestiture-of-its-nuclear-logistics-llc-operating-business-to-paragon-energy-solutions-301002470.html
SOURCE AZZ Inc.