Valmont Industries, Inc., a global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, today announced that it has entered into a definitive agreement to acquire the assets of CSP Coatings Systems of Auckland, New Zealand. The transaction will be funded with cash on hand, and is expected to close in the fourth quarter of fiscal 2018. After consideration for transaction costs, the company expects to achieve Year 1 EPS accretion of $0.06.
Founded in 1963, CSP is a comprehensive steel coating service provider in New Zealand, offering a full range of coatings services, including hot dip galvanizing, zinc metal spraying, painting, and duplex anti-corrosion coatings. With facilities in Auckland and Christchurch, CSP serves a broad base of customers and end markets, and employs approximately 40 people.
"The acquisition of CSP advances our strategy of geographic expansion, building on our existing presence in the New Zealand market," said Stephen G. Kaniewski, President and Chief Executive Officer. "The two CSP facilities provide a platform to further leverage our existing galvanizing operation on the North Island, while expanding our footprint to the South Island. In line with our addressable market expansion goals communicated at our 2018 Investor Day, the acquisition of CSP generates growth from an extensive portfolio of coatings services. We are excited to welcome the team to Valmont."