M&A: Metal & Automotive

AZZ, Bosch, and Terzo round out an M&A update

AZZ wins bid for Lectrus assets, including facility in Chattanooga. Fort Worth-based AZZ Inc., the metal coatings services company with over 70 years of industry experience, announced March 23 that it has completed the purchase of certain assets of Lectrus Corporation, according to a joint press release. The Chattanooga, Tenn., facility of Lectrus was included in the assets acquired by AZZ Enclosure Systems – Chattanooga LLC, a Delaware limited liability company. The purchase price was $8 million plus certain cure costs pursuant to the Bankruptcy Code, which amount to approximately $215,000. AZZ provides welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution and industrial markets. Founded in 1968, Lectrus Corporation is an industry leader in the design and manufacture of custom metal enclosures and related electrical and mechanical integration.  The company serves a blue-chip base of businesses that operate within the oil and gas, power generation, transmission and distribution, petrochemical, and alternative energy markets. Lectrus’s custom-designed and fabricated enclosures serve a variety of end-uses, including equipment centers, generator enclosures, operator centers, and enclosures that protect electrical power and mechanical control systems.

Former Bosch unit moves forward as SEG Automotive. Bosch Group’s former motors and generators unit now exists as its own entity: SEG Automotive. The company has added an electrification component to its mix of products, which it has been showcasing heavily at trade shows in 2018. In January, Bosch sold the division — which generated $2 billion in revenue in 2017 — to Zhengzhou Coal Mining Machinery Group Co. for a reported $595 million. The unit has been manufacturing starter motors and generators since 1914. While part of Bosch, it also created stop-start technology in 2007.

NorCal pump startup raises extra. Terzo Power Systems LLC of El Dorado Hills, Calif., has raised $3.5 million from investors to bring its efficient hydraulic systems to market. The company had sought a minimum of $3 million in its fundraising, beginning in June 2017, but it was oversubscribed by $500,000, said founder and chief technology officer Mike Terzo, per the Sacramento Business Journal. Terzo aims to continue its early growth through both fluid and hybrid power systems, including its “Hevi Hybrid” power platform—which it calls “a ground-up re-thinking of hybrid technology” for heavy-duty equipment—and distributed pump network systems, which it says create a highly controllable, compact, and extremely flexible fluid power system. “By taking a new approach to how engineers, technicians, OEM’s, distributors, or even the garage mechanic put together a hydraulic system, we were able to create the most powerful, yet gracefully simple hydraulic pump ever made,” the company’s website proclaims.

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