In its first report since buying Precoat Metals in May, AZZ Inc. said the company is pleased with the division’s performance and Precoat is on track for record sales.
Precoat Metals, a St. Louis-based metal coil coating solution provider, makes advanced protective and decorative coating applications and related services for the RV appliance market, among others.
Precoat was sold in May to AZZ for $1.28 billion by its previous owner, Sequa Corp.
“While segment-level results reflect just two weeks of performance as part of AZZ, I am pleased with the team’s performance thus far and, on a proforma basis, the business is on track to deliver record-level sales and EBITDA growth versus prior year,” AZZ President and CEO Tom Ferguson said. “The segment should continue to benefit from favorable market conditions, including growth in import steel shipments, as well as the growing trend in manufacturing toward the increasing use of pre-painted steel and aluminum.”
Precoat reported $9.8 million of earnings on $43.7 million in sales for its two weeks under AZZ ownership before the end of AZZ’s fiscal first quarter May 31.
Precoat has 1,100 employees and operates a network of 13 strategically located manufacturing facilities with 15 coating lines and 17 value-added processing lines. In 2021, Precoat Precoat generated $700 million in revenue and $137 million in adjusted earnings.
“This is an exciting milestone for Precoat Metals,” Precoat President Kurt Russell said after the acquisition was announced. “Through our 60-year history, Precoat has been part of several great organizations and I believe AZZ is an excellent cultural fit for our company.”
