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Valmont Buys American Galvanizing Company; Shares Up

Valmont Industries, Inc.VMI recently closed the acquisition of American Galvanizing Company of Folsom, NJ. American Galvanizing Company is a market leader in hot-dip galvanizing in the Northeast U.S. The company has been in business for more than 30 years and earned a high reputation for the quality of its work and superior customer service. It offers corrosion protection services to structural steel fabricators and steel manufacturers across the Northeast region.

This acquisition expands Valmont Coatings' network to 33 facilities in 6 countries around the world. Thus, the buyout of American Galvanizing Company is a crucial step toward driving further business growth for Valmont. Rick Cornish, Group President of Valmont's Global Coatings Segment, notified that both the companies will strive to provide better services to their customers, backed by Valmont's coast-to-coast network of facilities in North America.

Valmont's shares closed roughly 2.6% higher at $96.45 last Friday.

Valmont is primarily engaged in the production of fabricated metal products, metal and concrete pole and tower structures, and mechanized irrigation systems in the U.S. and abroad. In second-quarter 2015, sales in the company's Coatings segment plunged 11% year over year owing to reduced mining and industrial activity in Australia. Continued weakness in the Australian industrial economy adversely affected the segment.

The company projects challenging conditions in the external environment to continue in the near future. However, it expects to benefit from its restructuring actions and acquisitions. The company is also actively pursuing capacity expansion to meet the increasing demand from utility customers in North America.

Zacks Rank

Valmont currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials sector include ThyssenKrupp AG TYEKF , Primero Mining Corp. PPP and Asanko Gold Inc. AKG . While ThyssenKrupp sports a Zacks Rank #1 (Strong Buy), both Primero Mining and Asanko Gold carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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