Back to top

Analyst Blog

Zacks Equity Research

Edwards Group-Atlas Merger Approved

DOV BWC IR

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Shares of Edwards Group Limited on Oct 4, 2013 gained 0.4% over its previous day’s closing price, as the news of the company’s shareholders approval on merger with Atlas Copco Group was announced.

As per the terms of the agreement entered into on Aug 19, Edwards Group will be acquired by a subsidiary of Altas for roughly $10.50 per share in cash. The whole transaction has been valued at approximately $1.6 billion, including debt.
 
The per share merger consideration includes $9.25 of fixed cash payment to Edwards Group and the rest ($1.25 per share) is contingent upon the company achieving its guidance for 2013. The company’s value has been fixed at a premium of 11%-26% over Edwards Group's 30 day average closing share price of $8.33 up to August 16, 2013.
 
Both the parties of the merger agreement have already received a go ahead from their respective board of directors. The merger is likely to consummate in the first quarter 2014.

Edwards Group Limited is an industrial technology company engaged primarily in the manufacture and sales of vacuum products and abatement systems. The merger with Atlas will work in favour of the company’s existing shareholders.

A couple of days back, Edwards Group had increased its third quarter 2013 revenue and net income guidance. The revision was the outcome of solid revenue growth — on the back of the company’s Semiconductor and Flat Panel revenues experienced in the quarter.

The revised guidance range now stands at £177-180 million versus the previous guidance range of £160-175 million provided during the second quarter 2013. Net income is anticipated to grow in excess of previously provided guidance range of £17-25 million.

The Zacks Consensus Estimate for Edwards Group is currently pegged at 94 cents for 2013, representing year-over-year growth of 20.5%. Long-term earnings growth rate stands at 10.0%.

Edwards Group currently has a market capitalization of $1.1 billion. Other stocks to watch out for in the industry are The Babcock & Wilcox Company (BWC - Snapshot Report), Ingersoll-Rand Plc (IR - Analyst Report) and Dover Corporation (DOV - Analyst Report), each holding a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
MODINE MANUF MOD 17.25 +9.59%
VERTEX ENERG VTNR 8.01 +7.37%
CANADIAN SOL CSIQ 30.90 +5.79%
KNIGHTSBRIDG VLCCF 13.17 +5.02%
E*TRADE FINA ETFC 22.57 +4.98%