Valmont Industries, Inc., has recently confirmed that it has signed a definitive agreement to buy CSP Coatings Systems, a company based in Auckland, New Zealand. The deal is expected to be closed by the forth quarter of fiscal 2018 and Valmont will be paying for the transaction with cash on hand, said sources with knowledge of the matter.
For the uninitiated, Valmont Industries, Inc. is a global provider of engineered products and services, focused towards infrastructure development, irrigation equipment and agricultural services. The company estimates that after considering the overall transactions costs, the deal could result into a Year 1 EPS accretion of $0.06.
Chief Executive Officer and President for Valmont, Stephen G. Kaniewski, made a statement in which he emphasized that acquiring CSP will advance the company’s strategy to undertake territorial expansions and build on its existing presence in the New Zealand market. The facilities of CSP offer a platform to leverage the company’s current galvanizing operations further on the North Island, as well as to expand its presence to the South Island, he mentioned.
CSP Coatings Systems, records show, was founded in 1963 and is said to be the most comprehensive steel coatings company in New Zealand where it offers a full range of coatings services such as painting, zinc metal spraying, duplex anti-corrosion coatings and hot dip galvanizing. The two facilities of CSP are located in Christchurch and Auckland, from where the company is able to serve a wide customer base and end-user markets, employing around 40 personnel.
Noting the importance of incorporating the CSP team with Valmont, Kaniewski further mentioned that owing to the growth generated from the New Zealand company’s extensive coatings services portfolio, the acquisition of CSP falls in line with the market expansion goals Valmont had informed about at the company’s 2018 Investor Day.