OMAHA, Neb., Aug. 3, 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 a majority ownership stake in Convert Italia SpA, a designer and provider of engineered solar tracker solutions. The transaction was funded with cash on hand. The Company expects the acquisition to be slightly EPS accretive in fiscal 2018, and expects EPS accretion of approximately $0.10 in fiscal 2019.
Headquartered in Rome, Italy, with offices in Brazil and Argentina, Convert Italia has successfully completed solar tracker projects in Europe, Latin America, and Africa. Their single axis tracker product, the TRJ, was designed, developed, and patented by the Convert Italia team. The TRJ optimally positions solar panels to the sun's rays by continuously following solar exposure. The result is increased energy production compared to traditional, fixed solar structures, and lower installation costs than other single axis trackers.
"The partnership with Convert Italia is an exciting advancement of our strategy to grow market adjacencies in our Utility Support Structures business," said Stephen G. Kaniewski, President and CEO of Valmont. "Combining their single axis tracker technology with our global manufacturing capabilities and utility customer base, allows us to provide an integrated solar tracker solution to utility-scale customers around the world."
With more than 10 years' experience in the solar industry, and 35 years in the energy sector, the Convert Italia executive team will continue to lead the business. "The opportunity to partner with Valmont as an industry leader in the utility market has energized the Convert Italia team", said Giuseppe Moro, Chief Executive Officer of Convert Italia. "Valmont's global footprint and strong relationships with utility customers supports our leadership position in providing renewable energy solutions."
Mr. Kaniewski continued, "This acquisition uniquely positions Valmont to supply every type of electric grid structure within the utility market. As utilities increase development of large-scale solar power and microgrid applications, single axis tracker solutions will be an essential tool for achieving higher energy production. Our manufacturing footprint and supply chain capabilities give us flexibility across global markets to produce structural components for tracker technology. We are motivated by the robust growth opportunities in this industry, and welcome the strong leadership and knowledge of the Convert Italia team."
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.
SOURCE Valmont Industries, Inc.