Livingstone powers trade of electrical equipment solutions provider to global strategic buyer

Livingstone is pleased to announce the sale of Lectrus Corporation to AZZ Incorporated (NYSE: AZZ). The sale was completed pursuant to §363 of Chapter 11 of the United States Bankruptcy Code. Livingstone acted as the exclusive financial advisor to Lectrus. Lectrus is a leading provider of integrated electrical and mechanical enclosure systems. Lectrus serves a diverse, global OEM customer base across several end markets including oil & gas, petrochemical, power generation, transmission & distribution and alternative energy.

AZZ is a global provider of metal coatings services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution and industrial markets.

“Lectrus will expand our market presence and advance our goal of strengthening our market position in providing custom metal enclosures and related electrical integration to utility, industrial and OEM customers, commented Ken Lavelle, President of AZZ’s Electrical segment. He went on, “We look forward to adding the Lectrus heritage and strength of the Chattanooga operations to our AZZ Electrical business.”

Karl Freimuth, Partner at Livingstone, added “The modular enclosure sector is at an important inflection point.  Well capitalized players are in position to benefit from a period of market consolidation, reduction in capacity and an improved pricing environment.  Meanwhile, niche enclosure manufacturers serving attractive end market verticals remain logical acquisition targets to the industry consolidators. The Lectrus transaction represents another example of Livingstone’s demonstrated track record of selling lower middle market industrial technology assets to publicly-traded strategic acquirers.”

The Lectrus transaction adds to Livingstone’s extensive credentials in the electrical power equipment sector. Livingstone has also advised on the sales of Ultravolt to Advanced Energy, Professional Power Products to Power Solutions International, Applied Kilovolts to Exelis, Koontz Wagner to Global Power, and Uninterruptible Power Supplies to Kohler. The transaction also represents Livingstone’s third successful §363 sale in the last four months, following the sales of Maurice Sporting Goods and Quadrant 4 System Corporation.

“The sale to AZZ is an outstanding result for a business facing many challenges and industry headwinds,” said Joseph Greenwood, Special Situations Partner at Livingstone. “To be able to drive an industry-leading public company to come in and prevail in a highly competitive auction is a great success for all of the Company’s constituents.”

Winter Harbor served as restructuring advisor to Lectrus. Baker Donelson served as legal counsel to Lectrus.