We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Roper (ROP) Inks Deal to Divest Industrial Businesses to CD&R
Read MoreHide Full Article
Roper Technologies, Inc. (ROP - Free Report) recently entered into an agreement with Clayton, Dubilier & Rice, LLC (CD&R) to divest a majority of stake in its industrial businesses. The deal is valued at $2.6 billion in pre-tax cash proceeds.
Shares of Roper lost 2.6% yesterday, ending the trading session at $430.83.
Based in New York, Clayton, Dubilier & Rice is a private investment firm. It invests in companies operating in the North America and Europe-based sectors like retail, consumer, industrial, healthcare and others. Clayton, Dubilier & Rice has made more than $40 billion worth of investments since its inception.
Inside the Headlines
Per the deal, Roper will sell its Process Technologies segment and industrial units of Measurement & Analytical Solutions segment to CD&R. The company’s Process Technologies segment offers control and safety solutions for engines, compressors, turbines, marine and other industrial applications, while the Measurement & Analytical Solutions segment specializes in selling rugged handheld computers, high-resolution cameras, and sensors and patient-centric radiotherapy solutions for medical industries.
Roper’s businesses to be divested includes are AMOT, lpha, Cornell, CCC, FTI, Dynisco, Hardy, Hansen, Metrix, Logitech and others. It is worth noting that these businesses contributed revenues of about $940 million and EBITDA of $260 million in 2021.
The divested businesses will form a new independent company, whose 49% stake will be held by Roper and the remaining stake to be held by CD&R.
The divestment is in sync with Roper’s strategy of restructuring its business portfolio. The transaction is expected to deepen focus on and efficiently direct resources to higher-growth business lines. ROP also expects the after-tax proceeds from the transaction to enhance its capital-deployment ability by over 7 billion to acquire lucrative businesses.
The completion of the transaction, expected by the end of 2022, is subject to certain customary conditions.
Zacks Rank, Price Performance and Earnings Estimate Trend
Roper with a $45.6-billion market capitalization, currently carries a Zacks Rank #2 (Buy). ROP stands to benefit from strength across its businesses, acquired assets and strong operational executions in the quarters ahead. Its ability to generate healthy cash flows adds to its strength and supports its policy of rewarding its shareholders through dividend payments.
Image Source: Zacks Investment Research
Shares of ROP have lost 4.2% compared with the 11.7% decline of its industry in the past three months.
The Zacks Consensus Estimate for 2022 earnings has increased 1.2% to $15.63 in the past 60 days. Earnings estimates for 2023 have moved 1.8% north to $16.74 during the same period.
Zacks Rank & Other Stocks to Consider
Some other top-ranked companies from the industrial products sector are discussed below:
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have inched up 2% in the past three months.
Nordson Corporation (NDSN - Free Report) presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 4.5%, on average.
In the past 60 days, NDSN’s earnings estimates have increased 2.4% for 2022 (ending October 2022). The stock has declined 6% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.4% for 2022. IEX has dipped 1.7% in the past three months.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Roper (ROP) Inks Deal to Divest Industrial Businesses to CD&R
Roper Technologies, Inc. (ROP - Free Report) recently entered into an agreement with Clayton, Dubilier & Rice, LLC (CD&R) to divest a majority of stake in its industrial businesses. The deal is valued at $2.6 billion in pre-tax cash proceeds.
Shares of Roper lost 2.6% yesterday, ending the trading session at $430.83.
Based in New York, Clayton, Dubilier & Rice is a private investment firm. It invests in companies operating in the North America and Europe-based sectors like retail, consumer, industrial, healthcare and others. Clayton, Dubilier & Rice has made more than $40 billion worth of investments since its inception.
Inside the Headlines
Per the deal, Roper will sell its Process Technologies segment and industrial units of Measurement & Analytical Solutions segment to CD&R. The company’s Process Technologies segment offers control and safety solutions for engines, compressors, turbines, marine and other industrial applications, while the Measurement & Analytical Solutions segment specializes in selling rugged handheld computers, high-resolution cameras, and sensors and patient-centric radiotherapy solutions for medical industries.
Roper’s businesses to be divested includes are AMOT, lpha, Cornell, CCC, FTI, Dynisco, Hardy, Hansen, Metrix, Logitech and others. It is worth noting that these businesses contributed revenues of about $940 million and EBITDA of $260 million in 2021.
The divested businesses will form a new independent company, whose 49% stake will be held by Roper and the remaining stake to be held by CD&R.
The divestment is in sync with Roper’s strategy of restructuring its business portfolio. The transaction is expected to deepen focus on and efficiently direct resources to higher-growth business lines. ROP also expects the after-tax proceeds from the transaction to enhance its capital-deployment ability by over 7 billion to acquire lucrative businesses.
The completion of the transaction, expected by the end of 2022, is subject to certain customary conditions.
Zacks Rank, Price Performance and Earnings Estimate Trend
Roper with a $45.6-billion market capitalization, currently carries a Zacks Rank #2 (Buy). ROP stands to benefit from strength across its businesses, acquired assets and strong operational executions in the quarters ahead. Its ability to generate healthy cash flows adds to its strength and supports its policy of rewarding its shareholders through dividend payments.
Image Source: Zacks Investment Research
Shares of ROP have lost 4.2% compared with the 11.7% decline of its industry in the past three months.
The Zacks Consensus Estimate for 2022 earnings has increased 1.2% to $15.63 in the past 60 days. Earnings estimates for 2023 have moved 1.8% north to $16.74 during the same period.
Zacks Rank & Other Stocks to Consider
Some other top-ranked companies from the industrial products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1. AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have inched up 2% in the past three months.
Nordson Corporation (NDSN - Free Report) presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 4.5%, on average.
In the past 60 days, NDSN’s earnings estimates have increased 2.4% for 2022 (ending October 2022). The stock has declined 6% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.4% for 2022. IEX has dipped 1.7% in the past three months.