Trinity Sells U.S. Galvanizing To AZZ

(RTTNews) - Diversified industrial company Trinity Industries Inc (TRN) on Friday said it has sold the assets of its subsidiary, U.S. Galvanizing LLC, to AZZ inc (AZZ).

U.S. Galvanizing LLC ("USG") primarily provides corrosion protection services in the form of hot dip galvanizing to steel fabricators. The business has six facilities in Texas, Mississippi and Louisiana, all of which are included in the sale.

In August 2014, Trinity acquired the assets of Meyer Steel Structures, a manufacturer of steel structures for electricity transmission and distribution.

Meyer has maintained a long-term strategic supply relationship for hot dip galvanizing of its products with AZZ. As part of this divestiture, Meyer and AZZ have agreed to enhance and extend their relationship to create incremental value for both companies. Going forward, AZZ will be the primary supplier of hot dip galvanizing for Meyer.

The assets and results of operations for the USG divestiture were included in the Construction Products Group for financial reporting purposes. USG reported revenues of about $32 million in 2014 and approximately $9 million in the first quarter of 2015.

The impact of the divestiture was not included in Trinity's latest 2015 annual earnings guidance, and it is not expected to be material to the consolidated results.