Valmont acquires infrastructure manufacturer Derit in India

Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, recently 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," said Kaniewski.