AZZ Inc. Completes Acquisition of Precoat Metals from Sequa Corporation

FORT WORTH, Texas, May 13, 2022 /PRNewswire/ — AZZ Inc. (“AZZ” or the “Company”) (NYSE: AZZ), a global provider of galvanizing and metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services for maintaining and building critical infrastructure, today announced that it has completed its previously announced acquisition of the Precoat Metals business division (“Precoat”) of Sequa Corporation (“Sequa”), a portfolio company of global investment firm Carlyle (NASDAQ: CG), for a purchase price of approximately $1.28 billion

Headquartered in St. Louis, Missouri, Precoat is the leading independent provider of metal coil coating solutions in North America. Precoat engages in the advanced application of protective and decorative coatings and related value-added services for steel and aluminum coil primarily serving the construction; appliance; heating, ventilation and air conditioning (HVAC); container; transportation and other end markets. Precoat has approximately 1,100 employees and operates a network of 13 strategically located manufacturing facilities with 15 coating lines and 17 value-added processing lines. For the twelve months ended December 31, 2021, Precoat generated sales of approximately $700 million and adjusted EBITDA of approximately $137 million.

Tom Ferguson, Chief Executive Officer of AZZ, commented, “Today we welcome the 1,100 employees of Precoat to the AZZ family and begin the work of swiftly integrating Precoat into AZZ while leveraging the opportunities this acquisition creates. As I have previously stated, this acquisition significantly broadens our metal coatings offering, creating unrivaled scale and breadth of solutions in both the prepainted and post-fabrication coatings markets. We believe the coil coating market will provide sustainable future growth for AZZ, and we are excited to add a talented leadership team that shares similar values as well as employee and customer focus as we do at AZZ. This acquisition is consistent with our previously communicated strategy prioritizing North American coatings targets with strong strategic fit that are accretive within the first year of operation, and it is a testament to our commitment to drive profitable growth. This acquisition represents a continued transition of AZZ from a diverse holding company to a focused provider of coating and galvanizing services for critical applications.”

Kurt Russell, President of Precoat, commented, “This is an exciting milestone for Precoat Metals, as we continue our 60-year evolution. As the Precoat business shifts from being a non-core asset to one that is a paramount strategic priority within AZZ, Precoat will have the resources needed to continue our core growth strategies in support of our customers and, in return, accelerate sales growth and earnings for AZZ.”