AZZ Acquires Powergrid Solutions, Grows Switchgear Business
Zacks Investment Research | Sep 06, 2017 10:21PM ET
AZZ Inc. (NYSE:AZZ) , announced the acquisition of Powergrid Solutions, Inc., a privately held company, based in Oshkosh, WI. However, the terms of the agreement were kept under wraps.
Addition of Powergrid Solutions, a maker of low and medium-voltage switchgear systems, will create new opportunities for AZZ. Further, the company will now have an expanded portfolio of customized switchgear solutions on offer for its existing and new customers.
AZZ’s Gain from Acquisition
Powergrid Solutions' product portfolio mainly includes metal-enclosed, metal-clad and padmount switchgear and it caters to the utility, commercial, industrial and renewable energy markets. The acquisition will be accretive to AZZ’s performance and earnings growth from the first year of operation itself as it will expand the company’s switchgear market. The buyout will greatly benefit the company’s Energy Segment that delivers safe and reliable power from generation sources to end customers.
AZZ’s Expansion Plans
AZZ intends to pursue growth and increase customer base through acquisition of companies or assets that aid expansion of its existing service offerings along with increasing geographic footprint.
The company believes that improved project spending during the second half of the year through organic growth investments will improve revenues going forward. Additionally, its focus on strengthening existing switchgear business to drive future sales is in line with the company’s strategic growth initiatives. Notably, this business has witnessed a pickup in orders in recent times.
Price Movement
In the last six months, AZZ has underperformed the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.