OMAHA, Neb., Aug. 6, 2018 /PRNewswire/ -- Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, today announced that it has acquired full control of Walpar, LLC, an industry leader in the design, engineering and manufacturing of overhead sign structures for the North America transportation market. The transaction was funded with cash on hand, with a portion of the proceeds payable in early 2019. The Company expects to achieve Year 1 EPS accretion of approximately $0.12.
As an industry leader, Walpar has successfully completed projects for specialty road sub-contractors and large interstate prime contractors across the United States. Located in Birmingham, Alabama, the facility has served the transportation market since 1974, and employs approximately 70 people. A focus on forging partnership-driven customer relationships has led to growth and differentiation through high quality products, exceptional design and engineering capabilities, and excellent customer service. As of July 31, 2018, Walpar had trailing twelve-month revenues of approximately $22 million. The senior management team will continue to lead the business.
"The addition of Walpar products and services to our portfolio demonstrates our commitment to a stronger participation in the sign structures market," said Stephen G. Kaniewski, President and CEO of Valmont. "As intelligent transportation systems and smart city initiatives become more critical to road infrastructure, we believe this acquisition positions us well, enhancing our capabilities and market participation, and supporting our growth strategy. As we stated at our Investor Day earlier this year, the sign structures business creates a pathway to growth into adjacent transportation markets, and directly plays to our engineering, manufacturing and galvanizing strengths. The talented team at Walpar shares our vision and passion to deliver high quality products and services to our customers. We are excited to welcome them to Valmont."
About Valmont
Valmont is a global leader, designing and manufacturing engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its irrigation equipment and services for large-scale agriculture improves farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products.
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management's perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont's control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont's actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, risk factors described from time to time in Valmont's reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.
View original content:http://www.prnewswire.com/news-releases/valmont-acquires-industry-leading-manufacturer-of-engineered-overhead-sign-structures-300692678.html
SOURCE Valmont Industries, Inc.
