On April 1, New York, Texas, US-based electrical products and galvanizing services provider AZZ incorporated announced its acquisition of a leading hot dip galvanizing company in the US.
According to a company press release, AZZ incorporated has entered into a definitive merger agreement with Oklahoma-based North American Galvanizing & Coatings (NGA) to acquire NGA through a cash tender offer, followed by a merger with a subsidiary of AZZ, for a price of $7.50 per share in cash. The company said that NGA complements AZZ incorporated's current served market areas and provides additional growth and expansion opportunities.
The acquisition will be funded from AZZ's cash on hand and its existing credit facility. The $7.50 per share price represents a premium of approximately 42.6 percent over the weighted average price of NGA's common shares for the last 30 trading days. The transaction is valued at approximately $125.6 million. AZZ and NGA anticipate the transaction can close by the end of AZZ's second fiscal quarter.