AZZ To Sell Nuclear Logistics Unit; Suspends FY17 Outlook On Expected Charge

(RTTNews) - AZZ Inc. (AZZ), a provider of galvanizing, welding solutions, specialty electrical equipment and highly engineered services, announced Monday that it has entered into an agreement to divest its Nuclear Logistics LLC operating business unit to Westinghouse Electric Co. Terms of the transaction were not disclosed, and are subject to customary terms and conditions.

The company expects the transaction to close in the fall of 2016.

Nuclear Logistics is the largest third-party supplier of safety related equipment to the nuclear industry. The business has more than 180 employees and assumes a 200,000 square foot facility located in Ft. Worth, Texas. Nuclear Logistics' employees are knowledgeable in areas such as nuclear qualification and testing. These are well in line with the nuclear parts and supply business of Westinghouse, the company noted.

The company added that the transaction better positions AZZ to continue to expand its market share in the galvanizing and energy segments.

The company could potentially record a one-time, non-cash charge related to the sale, which would be moderately offset by the realization of deal-related tax benefits to the current fiscal year.

Further, the company said that due to the uncertainty of the charge and the timing of the potential sale, it is suspending previously issued earnings per share and revenue guidance for fiscal year 2017.

The company will discuss this further at the upcoming review of second quarter fiscal year 2017 scheduled for Wednesday, October 5.