AZZ’s $1.28 Billion Acquisition of Precoat Metals Business from Sequa

Latham & Watkins represented Sequa in the transaction.

AZZ Inc. (AZZ) (NYSE: AZZ), a global provider of galvanizing and metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services for maintaining and building critical infrastructure, and Sequa Corporation (Sequa), a portfolio company of global investment firm Carlyle (NASDAQ: CG), have jointly announced that they have entered into a definitive agreement whereby AZZ will acquire Sequa’s Precoat Metals business division (Precoat) for a purchase price of approximately US$1.28 billion. When adjusted for the net present value of approximately US$150 million of expected net tax benefits, the net purchase price is approximately US$1.13 billion, which represents approximately 8.2x Precoat’s adjusted EBITDA for the twelve months ended December 31, 2021.

Founded in 1961 and headquartered in St. Louis, Missouri, Precoat Metals is the leading independent provider of metal coil coating solutions in North America.

Sequa Corporation is a diversified industrial company with operations in the aerospace, energy and metal coatings industries through its Chromalloy and Precoat Metals business units. 

AZZ Inc. is a global provider of galvanizing and a variety of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services to a broad range of markets, including, but not limited to, the power generation, transmission, distribution, refining and industrial markets.

Latham & Watkins LLP represented Sequa in the transaction with a corporate deal team led by Washington, D.C. partner David Dantzic (Picture), with Washington, D.C. counsel Elizabeth More and associates Ryan Zumwalt and Kelsey Schutte. Advice was also provided on tax matters by New York partners David Raab and Alan Kimball; on benefits and compensation matters by Washington, D.C. partner David Della Rocca, with associate Nikhil Kumar; and on environmental matters by Washington, D.C. partner James Barrett.

Involved fees earner: James Barrett – Latham & Watkins; David Dantzic – Latham & Watkins; David Della Rocca – Latham & Watkins; Alan Kimball – Latham & Watkins; Nikhil Kumar – Latham & Watkins; Elizabeth More – Latham & Watkins; David Raab – Latham & Watkins; Kelsey Schutte – Latham & Watkins; Ryan Zumwalt – Latham & Watkins;

Law Firms: Latham & Watkins;

Clients: Sequa Corp;