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.