CHICAGO A Nebraska coil coater, tubing producer and manufacturer of metal-intensive utility structures and irrigation equipment Valmont Industries Inc. has acquired the manufacturing assets of Katana Summit LLC.
Omaha-based Valmont said the purchase includes a 300,000-square-foot plant in Columbus, Neb., which the company will reconfigure from producing wind towers to producing steel transmission structures for the utility industry, Valmont said in a statement Monday.
Terms of the acquisition were not disclosed.
The addition of the Nebraska facility will immediately provide needed incremental manufacturing capacity to serve our utility customers, Earl Foust, group president of Valmonts utility support structures division, said in the statement. I expect when modifications are complete in 2014, the plant will have approximately $100 million in additional annual capacity.
Katana Summit said in September that it was seeking a buyer for its operations, and said that if none was found, its plants in Nebraska and Ephrata, Wash., would likely close.
Although Katana had strong output this year due to increased demand for wind turbines spurred by the pending expiration of the production tax credit, the expiration subsequently caused the wind industry to halt the majority of development for 2013 until government policy is more certain, president and chief executive officer Kevin Strudthoff said in September.
Valmont produces tubing for commercial and industrial applications; manufactures poles, towers and structures for lighting and traffic, wireless communication and utility markets, industrial access systems, highway safety barriers and agricultural irrigation systems; and runs steel coil coating operations.
The company experienced a 34.6-percent year-on-year increase in third-quarter net income on sales that rose 8.6 percent from the same period last year, it said last month (amm.com, Oct. 19