Back to top

Image: Bigstock

AZZ Inc (AZZ) Acquires NuZinc, Expands Metal Coatings Segment

Read MoreHide Full Article

AZZ Inc. AZZ announced the acquisition of the assets of NuZinc, LLC — a Garland, TX-based privately-held company. The terms of the agreement were not disclosed.

AZZ Inc will operate in NuZinc’s 29,000 square foot facility as AZZ Powder Coating and Plating – Garland. The acquired assets will be integrated in the company’s existing powder coating and plating operations in the area. The company expects positive impacts of this acquisition on earnings within the first year of operation.

AZZ’s Gain from Acquisition

NuZinc is a plating company in the Dallas-Fort Worth area. The company provides electroplating services to the markets of aerospace, defense, telecommunications, medical, transportation and commercial industries. Post the acquisition, NuZinc has expanded AZZ Inc’s powder coating and plating operations to six in the Dallas-Fort Worth area. The buyout will also boost the company’s Metal Coatings segment. As of February 28, 2019, the company operated 42 metal coating plants located in various locations in the United States and Canada.

Other Acquisitions

Through acquisitions of companies or assets, AZZ Inc intends to expand its geographic footprint and increase customer base. In April 2019, the company completed the acquisition of all the outstanding shares of K2 Partners, Inc. and Tennessee Galvanizing, Inc. K2 Partners provides powder coating and electroplating solutions to customers in the Midwest and Southeast from locations in Texas and Florida. Tennessee Galvanizing provides galvanizing solutions to customers throughout the United States.

The Metal Coatings segment experienced higher demand in the solar and petrochemical markets. Contributions from the acquisition of Tennessee Galvanizing and K2 Partners also boosted the segment’s performance. Courtesy of acquisitions and improving demand, the segment generated revenues worth $289 million in first-quarter fiscal 2020, up 10% from first-quarter fiscal 2019. It is expected that the new acquired assets from NuZinc will boost performance in the segment.

Price Movement

The company’s shares have lost 25.7% compared with the industry’s decline of 21.3%.



Zacks Rank & Stocks to Consider

AZZ Inc currently carries a Zacks Rank #3 (Hold).

Investors can consider better-ranked stocks from same sector like Acco Brands Corporation (ACCO - Free Report) , AGCO Corporation (AGCO - Free Report) and Dover Corporation (DOV - Free Report) . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Acco Brands delivered an average positive earnings surprise of 15.57% in the last four quarters. The company’s long-term (three to five years) earnings growth is pegged at 7%.

AGCO Corporation pulled off an average positive earnings surprise of 33.84% in the trailing four quarters. The company’s long-term (three to five years) earnings growth is pegged at 13.41%.

Dover Corporation came up with an average positive earnings surprise of 6.91% in the trailing four quarters. The company’s long-term (three to five years) earnings growth is pegged at 11.50%.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


AZZ Inc. (AZZ) - free report >>

AGCO Corporation (AGCO) - free report >>

Dover Corporation (DOV) - free report >>

Acco Brands Corporation (ACCO) - free report >>

Published in