An acquisition of the largest third party supplier of Electrical and Mechanical equipment for enhancing the safety of nuclear facilities, that complements our current served markets and provides additional growth and expansion opportunities in the power generation segment.
Fort Worth, TX /PRNewswire/ -- AZZ incorporated ("AZZ") (NYSE: AZZ), a manufacturer of electrical products and a provider of galvanizing services, today announced that it has entered into an agreement to acquire substantially all of the assets of Nuclear Logistics, Inc. ("NLI"), a Fort Worth, TX based provider of electrical and mechanical equipment and services for enhancing the safety of nuclear facilities. The acquisition, which is subject to customary closing conditions, including the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, is anticipated to close on June 1, 2012 and is a part of the stated AZZ strategy to expand our offerings in the Electrical and Industrial Products segment and to enhance our presence in the Power Generation market.
Founded in 1991, NLI has established itself as a premier provider of Electrical and Mechanical components to nuclear power plants and US Department of Energy facilities. NLI works in concert with leading equipment manufacturers to supply equipment to meet nuclear industry requirements including seismic and environmental qualification, EMI/RFI testing and software verification and validation. NLI also has custom design and manufacturing capabilities to meet the industry specific requirements. NLI's mission is to provide technically superior solutions to the nuclear industry.
"NLI is a great addition to AZZ's outstanding portfolio of brands under the Electrical and Industrial Products Segment. NLI plays the critical role of enhancing and ensuring the safety of nuclear facilities, especially in light of the recent developments in Fukushima, Japan and the increased awareness of safety and redundancy for the nuclear industry in general," stated David H. Dingus, president and chief executive officer of AZZ incorporated. "This transaction is consistent with our stated strategy of focusing on the Power Generation market segment and reinforces our commitment to growth by acquisitions," he continued.
For the first full year under AZZ, NLI revenues are expected to be in the range of $70 to $80 million. AZZ expects the acquisition to be accretive to FY2013 EPS by $0.20 to $0.25, which will include the expected acquisition costs and the amortization of intangible assets, including NLI's acquired backlog of approximately $75 million.
The Asset Purchase Agreement provides for the acquisition by AZZ of substantially all of the assets of NLI for cash consideration in the amount of $80 million and the assumption of current liabilities plus $4.8 million of notes payable, which will be paid at closing. Additionally, pursuant to the Asset Purchase Agreement, AZZ could be obligated to make an additional payment of up to $20 million to NLI based on the future financial performance of the Assets.
About AZZ incorporated (NYSE: AZZ)
AZZ incorporated is a specialty electrical equipment manufacturer serving the global markets of industrial, power generation, transmission and distributions, as well as a leading provider of hot dip galvanizing services to the North American steel fabrication market.
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SOURCE AZZ incorporated