Electrical products maker AZZ Inc. (AZZ) reported signing a Securities Purchase Agreement to acquire Aquilex Specialty Repair and Overhaul, LLC or "Aquilex SRO" from Aquilex Holdings LLC, which is majority owned by affiliates of Centerbridge Partners, L.P.
This agreement provides for the acquisition by AZZ of all of the equity interests of Aquilex SRO for around $250 million cash, which would be adjusted for changes in working capital at the time of closing. The acquisition would be funded using cash on hand and through a new bank credit agreement, which may be inked by AZZ simultaneously with the closing of the Aquilex SRO acquisition.
The transaction, which may close within nearly 30 days, is a part of the stated AZZ strategy to expand the company's offerings in the Electrical and Industrial Products Segment and to enhance its market presence in our primary served markets. Aquilex SRO's proprietary processes and highly-engineered technology solutions provide unique life extension options for critical plant infrastructure utilizing proprietary automated equipment and a specialized work force, according to AZZ.
For the first year under AZZ, Aquilex revenues are projected to be in the range of $225 million - $250 million. The company believes that the acquisition would be accretive for the first twelve months of ownership of about $0.25 - $0.30 per share, after accounting for some $5 million deal transaction cost that would be written off in the first year of operation.
During the second full year of ownership, AZZ expects the accretion to approximate $0.50 to $0.60 per share. It is anticipated that AZZ would update fiscal year 2014 as part of its fiscal 2013 final earnings announcement and conference call on April 5, 2013. The existing senior management team of Aquilex SRO would join the AZZ leadership team.
Founded in 1978 to provide machine welding services for nuclear units and nuclear plant maintenance, Aquilex SRO has continued to expand its service offerings to offer a balanced portfolio of life extension services to the nuclear, fossil, waste to energy, refining, chemical processing, pulp and paper and general industrial markets.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.