AZZ Inc. Announces Acquisition of Preferred Industries, Ltd. Expanding Metal Coating Services

Strategic Acquisition Expands AZZ's Powder Coating and Plating Operations to Eight Locations in the Dallas-Fort Worth Area

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AZZ Inc.

Sep 30, 2019, 06:30 ET

FORT WORTH, Texas, Sept. 30, 2019 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services, announced today that it has acquired all the assets of Preferred Industries, Ltd., ("Preferred"), a privately held powder coating company in the Dallas-Fort Worth area. Preferred provides powder and e-coating services to the automotive, HVAC, marine, transportation, medical, industrial, and plastics industries. Terms of the transaction were not disclosed. AZZ expects the acquisition will be accretive to earnings within the first year of operation.

Through the acquisition, AZZ gains the powder and e-coating operations as well as employees of Preferred, which operates a 155,000 square foot facility in Terrell, and an 89,600 square foot facility in Rowlett, Texas. Going forward, AZZ intends to operate the facilities as AZZ Surface Technologies – Terrell, and AZZ Surface Technologies - Rowlett, and will integrate them with six existing powder coating and plating operations the company operates in the area.

Michael Doucet, Senior Vice President of AZZ Surface Technologies commented, "We are pleased with the acquisition of Preferred Industries, as we continue to execute on our strategic plan to broaden our service offerings and expand our network of Surface Technology plants. AZZ now operates eight coating and plating operations in the Dallas-Fort Worth area. We welcome Preferred Industries' employees and customers to AZZ and look forward to a seamless integration."

About Preferred Industries Ltd.

Founded in 1980, Preferred Powder Coating has been committed to excellence in quality, turnaround time, and customer value for 35 years. An ISO 9001:2008 registered company with locations in Rowlett and Terrell, Texas, Preferred's vision is to be the recognized leader in powder coating and industrial wet paint services in the Dallas-Fort Worth Metroplex. The company's services include powder coating, spray painting, e-coating, mil-spec, and coating removal.

About AZZ Inc.

AZZ Inc. is a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services to the markets of 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 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

SOURCE AZZ Inc.