Back to top

Analyst Blog

Manitex International, Inc. (MNTX - Snapshot Report) has completed its earlier announced acquisition of Valla, SpA. The acquisition, for a potential consideration of up to $1.2 million, primarily based on an earn-out provision, closed on Nov 30.

Piacenza, Italy-based Valla is a manufacturer of a comprehensive line of precision pick and carry cranes with lifting capacities from 2.5–90 ton. Valla cranes serve various end-markets such as petrochemical, construction, aerospace and automotive.

Valla is expected to benefit from Manitex’s valuable resources. In addition, the acquisition will also give Valla access to the wider dealership network of Manitex, subsequently developing Valla’s market position.

Conversely, Manitex will gain from Valla's mobile industrial cranes. These cranes are famous for their superior quality and brand name. This acquisition will also bring diversity to Manitex’s crane portfolio and increase its product offering globally.

The Valla acquisition is in sync with Manitex’s commitment to expand its presence in overseas markets which will in turn aid future growth of the company. The acquisition is expected to be accretive to Manitex’s earnings in 2014.

Manitex reported third-quarter 2013 earnings of 21 cents per share, up 8% year over year and a penny short of the Zacks Consensus Estimate. Net revenues also rose 8% year over year to $57 million, missing the Zacks Consensus Estimate of $63 million. The year-over-year growth was led by an increase in revenues from boom truck cranes, and equipment distribution and contribution from the Sabre acquisition.

Manitex expects fourth-quarter sales to be higher compared with the earlier quarter. The increment is expected to be driven by the Sabre acquisition, production of higher tonnage cranes, as well as other specialized equipment.

The company remains optimistic about the introduction of new products, allowing revenues to grow in the near term. For 2013, the company is projecting a 20% increase in revenues.

Bridgeview, Ill.-based Manitex International is a leading provider of engineered lifting solutions including boom truck and rough terrain cranes, rough terrain forklifts, special mission oriented vehicles, container handling equipment and specialized engineered trailers.

Manitex currently has a Zacks Rank #4 (Sell).

However, stocks in the same industry with favorable Zacks Rank include Xylem Inc. (XYL - Analyst Report), DXP Enterprises, Inc. (DXPE - Snapshot Report) and Flowserve Corp. (FLS - Analyst Report). While Xylem holds a Zacks Rank #1 (Strong Buy), DXP Enterprises and Flowserve carry 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

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
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%