By Sabela Ojea
AZZ said Avail Infrastructure Solutions is selling its electrical enclosures, switchgear and bus systems businesses to nVent Electric for $975 million, but it will continue to own a 40% interest in Avail.
The provider of hot-dip galvanizing and coil-coating solutions said Monday it would use the cash generated from the divestment to further reduce debt, or fund potential mergers and acquisitions.
AZZ and Fernweh Group, with a 60% interest in Avail, acquired their stakes through a joint venture that was entered into in 2022.
"The agreement to divest the electrical products group within Avail to nVent represents the continued transition of AZZ into a focused industry leading provider of metal coating solutions," AZZ Chief Executive Tom Ferguson said.
AZZ also said that it won't adjust its own fiscal year 2026 earnings guidance at this time, but that its debt reduction will be significantly higher than announced.
Avail's divestment deal is expected to close in the first half of 2025. AZZ's non-controlling 40% interest in Avail will then consist of Avail's industrial lighting and welding solutions businesses, representing around 30% of pre-transaction group revenue.
"We will treat the gain on sale as a one-time adjustment to net income and earnings per share and believe the reduction in joint venture equity income will be offset by interest savings," Ferguson said.
Write to Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
March 10, 2025 12:46 ET (16:46 GMT)
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