Trinity Industries Inc. entered into an agreement to buy the assets of Meyer Steel Structures, the utility steel structures division of Thomas & Betts Corp., a member of the ABB Group, for a purchase price of about $600 million.
The transaction is subject to customary regulatory approvals and is expected to close during the third quarter. Trinity expects to fund the purchase price with available cash on hand.
Established over 85 years ago, Meyer is a provider of tubular steel structures for electricity transmission and distribution. Meyer’s products include engineered poles, H-frames, light duty poles and substation structures, provided to customers with integrated design, engineering, manufacturing and delivery.
With headquarters in Memphis, Tennessee, Meyer employs more than 1,100 people and has manufacturing facilities in Alabama, South Carolina, Texas and Wisconsin. On a stand-alone basis, Meyer is expected to record full-year 2014 revenues of about $325 million.
Trinity will report revenue and earnings from Meyer upon completion of the transaction, and its operating results will be included in Trinity’s Energy Equipment Group.
Trinity expects the transaction will be accretive to full-year 2014 earnings but cannot provide a range of earnings guidance until the transaction is completed and purchase price accounting entries are finalized.