Back to top

Analyst Blog

Ametek Inc. (AME - Snapshot Report) recently announced the acquisition of Teseq Group for CFH 83 million ($92 million).

Headquartered in Luterbach, Switzerland, the privately held Teseq supplies Electromagnetic compatibility (EMC) test solutions. It provides EMC compliance testing systems for a wide range of industries, including aerospace, automotive, consumer electronics, medical equipment, telecommunications and transportation. The company has direct sales offices in China, France, Germany, Japan, Singapore, Switzerland, Taiwan, the U.K. and the U.S. Ametek has annual sales of approximately CHF 48 million ($53 million).

Upon the completion of the deal, Teseq will come under Ametek’s Electronic Instruments Group (EIG) segment. In third-quarter 2013, EIG comprised 56% of Ametek’s sales, which were up 9.3% from the year-ago quarter to $499.8 million driven by strength in Aerospace, and oil and gas businesses, combined with the contribution from Micro-Poise and Controls Southeast acquisitions.

The acquisition, effective immediately, will extend Ametek’s capabilities in serving its customers in the electrical test and measurement business. It will enable the company to provide improved product offerings and increase market share, thereby expanding the company’s customer base.

Ametek is quite active on the M&A front. Last month, the company acquired the privately held Powervar for about $128 million which provides engineered and customized products for use in critical applications. In Oct 2013, Ametek acquired Canada-based Creaform, Inc., a manufacturer of portable 3D measurement technologies and 3D engineering services for approximately $120 million. In Aug 2013, the company took over Controls Southeast, Inc., a leading manufacturer of custom-engineered thermal solutions for approximately $160 million.

The company’s acquisition pipeline remains quite robust with opportunities to further expand and strengthen its portfolio.

In third-quarter fiscal 2013, Ametek earned revenues of $890.0 million. Revenues were up 1.3% sequentially and 6.0% year over year due to strong demand in the Electronic as well as Electromechanical segments. Earnings of 52 cents were in line with the Zacks Consensus Estimate.

Currently, Ametek has a Zacks Rank #2 (Buy). Other stocks worth considering in its sector are Blucora Inc. (BCOR - Snapshot Report), Facebook (FB - Analyst Report) and Aol Inc. (AOL - Snapshot Report). All these stocks carry a Zacks Rank #1 (Strong 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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%