DALLAS--(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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Trinity Industries, Inc.
Investor Contact:
Jessica L.
Greiner, 214-631-4420
Director of Investor Relations
or
Media
Contact:
Jack Todd, 214-589-8909
Vice President, Public
Affairs
Source: Trinity Industries, Inc.