Valmont Industries, Inc. (NYSE: VMI), yesterday announced that it has signed a definitive agreement to acquire a majority interest in Colorado-based ConcealFab, a provider of 5G infrastructure and passive intermodulation (PIM) mitigation solutions. Ericsson will reinvest its ConcealFab equity and hold a minority position in the new company.
The strategic partnership with Ericsson to acquire ConcealFab aligns Valmont with a provider of 5G infrastructure and PIM mitigation solutions. Founded in 2007 in Colorado Springs, CO, ConcealFab has partnerships with wireless operators, utilities, and major OEMs.
“Valmont is advancing our infrastructure portfolio with a greater focus on high-growth and high return on invested capital opportunities,” said Valmont’s Aaron Schapper, group president, Infrastructure. “The future of infrastructure, especially in the telecommunications space, relies on connectivity, sustainable solutions and seamless expansion across the globe. I’m proud to say that together, this partnership between Valmont, Ericsson and ConcealFab will play a central role in meeting the integrated telecommunication needs of the future by leveraging our companies’ deep customer relationships, customer-centric values, and our combined footprint to accelerate our growth strategy.”
The transaction will be funded with cash on hand, and is expected to be immediately accretive to earnings, with Year-1 revenue of approximately $50 million. The transaction is expected to close in the second quarter of 2022, and is subject to customary closing conditions.
“Investing in 5G infrastructure aligns with Ericsson’s goal to streamline the delivery of 5G networks throughout North America,” said Kevin Zvokel, head of networks, Ericsson North America. “We believe the combined strengths of Ericsson, Valmont and ConcealFab will address critical pain points and further propel the delivery of 5G technology to our customers throughout the U.S. We are excited to be a part of their future.”
“This is a pivotal moment for Valmont,” said Joseph Catapano, president, Global Telecom at Valmont. “We hold a firm commitment to innovation and putting our customers first—this is shared by both ConcealFab and Ericsson. With this transaction and our combined portfolio of products, services, and capabilities, we are positioned to usher in a new era of unprecedented innovation and customer service. We are excited to welcome ConcealFab to the Valmont Team.”
Valmont’s Telecom strategy is focused on three key objectives: providing vital end-to-end infrastructure products, spreading inclusive connectivity by investing in strategic partnerships, and expanding its manufacturing footprint globally. The joint acquisition brings this strategy to life and positions Valmont and ConcealFab with the opportunity to immediately accelerate expansion in the concealment, PIM solutions and RF markets.
“As an early innovator in 5G and small cell infrastructure, ConcealFab has been bridging the gap between an evolving technology and market needs for 15 years, and this combination with Valmont and Ericsson presents an accelerated path for further growth and expansion,” said ConcealFab CEO Jonathan Fitzhugh. “Valmont’s global manufacturing footprint and established presence with key stakeholders uniquely position us to meet the anticipated ramp in demand for telecom infrastructure across the U.S. and beyond. We are looking forward to improving connectivity for customers around the world.”
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