Trinity Industries, Inc. Announces the Divestiture of the Assets of U.S. Galvanizing, LLC
June 05 2015 - 9:00AM
Business Wire
Trinity Industries, Inc. (NYSE:TRN) today announced it has sold
the assets of its subsidiary, U.S. Galvanizing, LLC, (“USG”) to AZZ
incorporated (NYSE: AZZ). USG primarily provides corrosion
protection services in the form of hot dip galvanizing to steel
fabricators focused in the Southern United States. The business has
six facilities in Texas, Mississippi and Louisiana, all of which
are included in the sale. Trinity assembled the current facility
footprint during the past several years through a number of
acquisitions.
In August of 2014, Trinity acquired the assets of Meyer Steel
Structures (“Meyer”), a leading manufacturer of steel structures
for electricity transmission and distribution. Meyer has maintained
a long-term strategic supply relationship for hot dip galvanizing
of its products with AZZ. As part of this divestiture, Meyer and
AZZ have agreed to enhance and extend their relationship to create
incremental value for both companies. Going forward, AZZ will be
the primary supplier of hot dip galvanizing for Meyer.
“From a strategic perspective, AZZ possesses the industry scale
to serve Meyer effectively over the long term,” said Timothy R.
Wallace, Trinity’s Chairman, CEO, and President. “Divesting of USG
provides Trinity with capital to reinvest in other strategic
opportunities,” added Mr. Wallace.
The assets and results of operations for the USG divestiture
were included in the Construction Products Group for financial
reporting purposes. USG reported revenues of approximately $32
million in 2014 and approximately $9 million in the first quarter
of 2015. The impact of the divestiture was not included in
Trinity’s latest 2015 annual earnings guidance, and it is not
expected to be material to the consolidated results.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a
diversified industrial company that owns market-leading businesses
which provide products and services to the energy, transportation,
chemical and construction sectors. Trinity reports its financial
results in five principal business segments: the Rail Group, the
Railcar Leasing and Management Services Group, the Inland Barge
Group, the Construction Products Group, and the Energy Equipment
Group. For more information, visit: www.trin.net.
Some statements in this release, which are not historical facts,
are “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements about Trinity's estimates,
expectations, beliefs, intentions or strategies for the future, and
the assumptions underlying these forward-looking statements.
Trinity uses the words “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “forecasts,” “may,” “will,” “should,” and
similar expressions to identify these forward-looking statements.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from historical
experience or our present expectations. For a discussion of such
risks and uncertainties, which could cause actual results to differ
from those contained in the forward-looking statements, see
“Forward-Looking Statements” in the Company's Annual Report on Form
10-K for the most recent fiscal year.
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version on businesswire.com: http://www.businesswire.com/news/home/20150605005415/en/
Trinity Industries, Inc.Investor Contact:Jessica L.
Greiner, 214-631-4420Director of Investor RelationsorMedia
Contact:Jack Todd, 214-589-8909Vice President, Public
Affairs
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