OMAHA, Neb., Aug. 1, 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 the operational assets of Derit Infrastructure Pvt. Ltd., a manufacturing facility in India's Gujarat state, with production capabilities for steel lattice structures for power transmission, wireless communication, and renewable generation, and a provider of zinc galvanizing services. The purchase price was funded with cash on hand and additional terms were not disclosed. The Company expects the transaction to be EPS neutral in 2018.
Located in Vadodara, India, the state-of-the-art facility was built in 2013 and purchased by Derit late last year. Its 40,000 metric tons of lattice manufacturing capacity will provide Valmont with an immediate ability to begin quoting and building a backlog for utility lattice products, and global expansion for telecommunication lattice products. Their custom zinc galvanizing operations currently provide coatings services to local, external markets, with additional capacity to meet internal market demand.
"Today marks a significant step forward for Valmont with our initial entrance into the lattice structures market," said Stephen G. Kaniewski, President and CEO of Valmont. "The manufacturing capabilities of the Derit facility positions us to offer a competitive, lattice solution for the global utility market. We are now able to provide our customers a complete offering of utility structures for all voltage classes. Strategic access to nearby ports enhances export opportunities, aligning with the market growth strategies outlined at our Investor Day earlier this year. With this acquisition, we are well-positioned to benefit from positive, global secular trends in infrastructure development across the utility and telecommunications markets. We are excited to welcome the Derit team to Valmont, building on their manufacturing and galvanizing expertise."
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.