AZZ Inc. (NYSE: AZZ), a global provider of metal coatings services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution and industrial markets, announced that it has won the bid to acquire certain assets through a 363 bankruptcy sale process, from Lectrus Corporation, a privately-held Chattanooga-based corporation that designs and manufactures custom metal enclosures and provides electrical and mechanical integration.
The Chattanooga facility of Lectrus is included in the assets acquired.
Ken Lavelle, president of AZZ's Electrical segment, said, "The opportunity to purchase certain strategic assets from Lectrus through a 363 bankruptcy sale process is a result of the consolidation that is occurring within the metal enclosure industry in the U.S., which is particularly challenging for smaller, less well-capitalized operators. AZZ is well positioned to remain an opportunistic acquirer of strategic assets that will further enhance AZZ's market share and improve operations."
The Chattanooga facility is located on a 585,000 square-foot site. The operations include a 210,000 square-foot manufacturing facility, as well as engineers, estimators, project management, fabrication, integration and sales personnel.
Going forward, the facility will operate as AZZ Enclosure Systems – Chattanooga LLC, a Delaware limited liability company, and will complement AZZ's current metal enclosure and switchgear locations in Kansas, Maryland, and Missouri.
The acquisition is subject to final court approval of the Sale Order, the Asset Purchase Price Agreement and customary closing conditions. Closing is expected on, or before, March 31.
Mr. Lavelle said, "The Chattanooga facility will expand our market presence and advance our goal of strengthening our market position in providing custom metal enclosures and related electrical integration to utility, industrial and OEM customers. We look forward to adding the Lectrus heritage and strength of the Chattanoogaoperations to our AZZ Electrical business. AZZ expects the AZZ Enclosure Systems - Chattanooga facility to be accretive to earnings within the first year of operation."
Founded in 1968, Lectrus Corporation serves a blue-chip base of businesses that operate within the oil and gas, power generation, transmission and distribution, petrochemical, and alternative energy markets. Lectrus's custom-designed and fabricated enclosures serve a variety of end-uses, including equipment centers, generator enclosures, operator centers, and enclosures that protect electrical power and mechanical control systems.
AZZ's Metal Coatings Segment is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ's Energy Segment 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.