OMAHA, Neb., Sept. 26, 2018 /PRNewswire/ -- Valmont Industries, Inc. (NYSE: VMI), a leading 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 the most 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."
Valmont is a global leader, designing and manufacturing engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its irrigation equipment and services for large-scale agriculture improves farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products.
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management's perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont's control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont's actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, risk factors described from time to time in Valmont's reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.
SOURCE Valmont Industries, Inc.