Valmont Industries, Inc.
) has acquired Australia-based Locker Group Holdings Pty Ltd for
an undisclosed price. Market leader in Australia and Asia, Locker
Group has annual sales of nearly $80 million and possesses five
manufacturing locations across the region. Valmont anticipates
the buyout be to slightly accretive to its 2013 earnings after
considering the transaction costs.
Locker Group, a privately held company, manufactures perforated
and expanded metal for the non-residential market, industrial
flooring and handrails for the access systems market, and
screening media for applications in the industrial and mining
The acquisition strengthens Valmont's position in the access
systems market and also provides exposure in the perforated and
expanded metal products markets. Valmont intends to leverage
Locker Group's product and marketing teams for expanding further
in the Asia-Pacific region.
Valmont, In Jan 2013, also acquired certain assets of Ontario,
Canada-based Pure Metal Galvanizing. Pure Metal, which has annual
sales of roughly CAD$34 million ($34.4 million), is a market
leader in custom hot dip galvanizing in Canada. It operates five
kettles out of three locations in Ontario. The terms of the
buyout were not disclosed.
The purchase of the Canadian galvanizing operations reinforces
Valmont's global galvanizing business. The company sees the
acquisition to be modestly accretive to its earnings in 2013.
Valmont Industries, which is among the prominent steel-pipe
and tube companies along with
MRC Global Inc.
), reported impressive third-quarter 2012 results in Oct 2012
with both revenues and adjusted earnings exceeding the Zacks
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Valmont expects continued strength in its utility business. It
also sees healthy demand for irrigation equipments from farmers
in the fourth quarter. The company expects to post double-digit
earnings growth in 2012 despite the European slowdown.
Valmont, which has a short-term Zacks Rank #2 (Buy), will report
its fourth-quarter 2012 results on Feb 13.