AZZ Inc. and Sequa Corporation, a portfolio company of global investment firm Carlyle (NASDAQ: CG), jointly announced today that they have entered into a definitive agreement whereby AZZ will acquire Sequa's Precoat Metals business division (Precoat) for a purchase price of approximately $1.28 billion. When adjusted for the net present value of approximately $150 million of expected net tax benefits, the net purchase price is approximately $1.13 billion, which represents approximately 8.2x Precoat's adjusted EBITDA for the twelve months ended December 31, 2021.
Headquartered in St. Louis, Missouri, Precoat is the leading independent provider of metal coil coating solutions in North America. Precoat engages in the advanced application of protective and decorative coatings and related value-added services for steel and aluminum coil primarily serving the construction; appliance; heating, ventilation and air conditioning (HVAC); container; transportation and other end markets. Precoat has approximately 1,100 employees and operates a network of 13 strategically located manufacturing facilities with 15 coating lines and 17 value-added processing lines. For the twelve months ended December 31, 2021, Precoat generated revenue of approximately $700 million and adjusted EBITDA of approximately $137 million.
Tom Ferguson, Chief Executive Officer of AZZ, commented, "We are pleased to acquire North America's largest independent provider of metal coil coatings and related services. Through this acquisition, AZZ significantly broadens our metal coatings offering, creating unrivaled scale and breadth of solutions in both the prepainted and post-fabrication coatings markets. We believe the coil coating market will provide sustainable future growth for AZZ, and we intend to provide Precoat with the financial resources to expand and further invest in commercial and operational excellence. This acquisition is consistent with our previously communicated strategy prioritizing North American coatings targets with strong strategic fit that are accretive within the first year of operation, and it is a testament to our commitment to drive profitable growth. This acquisition represents a continued transition of AZZ from a diverse holding company to a focused provider of coating and galvanizing services for critical applications. We welcome Precoat's talented employees and management team to AZZ and look forward to a seamless integration with uninterrupted industry-leading service to their customers."
The acquisition is anticipated to be immediately and substantially accretive to AZZ's adjusted earnings per share. Not including Precoat, AZZ upgrades its fiscal year 2022 revenue guidance to $890 million to $910 million and now expects to generate fiscal year 2022 earnings per share of $3.15 to $3.25, exceeding the Company's prior guidance of $3.00 to $3.20.