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.
Carlisle's Petersen Aluminum Buyout to Aid Roofing Business
Read MoreHide Full Article
Carlisle Companies Incorporated (CSL - Free Report) announced that it has agreed to acquire Elk Grove Village, IL-based Petersen Aluminum Corporation. The transaction value has been fixed at approximately $197 million.
Founded in 1965, Petersen Aluminum is primarily engaged in manufacturing metal roofing products for use in the industrial, commercial, agricultural, residential and institutional end markets. The firm’s high-quality product offerings include wall and metal roofs panels, perimeter roof edge systems, flat sheets of steel and aluminium, coils and other products. Its most popular brand is PAC-CLAD.
Petersen Aluminum generates approximately $160 million in revenues annually.
Details of the Buyout
Per the terms of the agreement, the buyout will be executed through the company’s Carlisle Construction Materials (“CCM”) segment. It’s worth mentioning here that the acquisition will expand the segment’s product offerings in the metal roofing platform, helping generate annual synergies of approximately $4 million. Also, this takeover will enable the company to easily penetrate the markets of Arizona, Texas, the Midwest and Georgia.
Notably, Carlisle’s CCM segment primarily engages in manufacturing waterproofing and roofing products for use in the industrial and commercial end markets. The segment is also the leading manufacturer and supplier of rubber roofing systems in Europe. This segment accounted for roughly 65.8% of the company’s total revenues in third-quarter 2018.
Snapshot of Carlisle Companies’ Buyout Initiatives
We believe that the above-mentioned transaction is in line with Carlisle’s policy of acquiring businesses to gain an access to new customers, regions and product lines.
Prior to the Petersen Aluminum buyout-deal, Carlisle added a similar line of businesses to its portfolio by acquiring Drexel Metals, Sunlast Metal and Premium Panels. Drexel Metals was acquired last July while Sunlast Metal and Premium Panels were bought in June 2018.
Significantly, Carlisle spent approximately $19.5 million on acquisitions (net of cash acquired) during the first nine months of 2018. Further, acquired assets added nearly 11.7% to sales growth in the third quarter of 2018.
Zacks Rank
With a market capitalization of nearly $6 billion, Carlisle currently carries a Zacks Rank #3 (Hold). A diversified product portfolio, buyouts, healthy commercial construction market in the United States and restructuring initiatives will be advantageous for the company in the quarters ahead. However, increasing input costs and high freight expenses plus exposure to forex woes might hurt its performance.
In the past 60 days, Carlisle’s earnings estimates for 2018 have been revised downward by six brokerage firms while that for 2019 by four firms. Currently, the Zacks Consensus Estimate is pegged at $5.61 for 2018 and $6.92 for 2019, reflecting a decline of 5.4% and 1.3%, each for 2018 and 2019 from the respective tallies 60 days ago.
Carlisle Companies Incorporated Price and Consensus
Since the release of third-quarter 2018 results on Oct 8, 2018, the company’s shares have declined 14.1% compared with the industry’s fall of 18.5%.
Stocks to Consider
Some better-ranked stocks in the industry are HC2 Holdings, Inc. , Crane Co. (CR - Free Report) and Federal Signal Corporation (FSS - Free Report) . While HC2 Holdings sports a Zacks Rank #1 (Strong Buy), Crane and Federal Signal carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for all the above three stocks improved with respect to the current year. Further, the positive earnings surprise in the last reported quarter was delivered at 111.90% for HC2 Holdings, 11.72% for Crane and 9.09% for Federal Signal.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Carlisle's Petersen Aluminum Buyout to Aid Roofing Business
Carlisle Companies Incorporated (CSL - Free Report) announced that it has agreed to acquire Elk Grove Village, IL-based Petersen Aluminum Corporation. The transaction value has been fixed at approximately $197 million.
Founded in 1965, Petersen Aluminum is primarily engaged in manufacturing metal roofing products for use in the industrial, commercial, agricultural, residential and institutional end markets. The firm’s high-quality product offerings include wall and metal roofs panels, perimeter roof edge systems, flat sheets of steel and aluminium, coils and other products. Its most popular brand is PAC-CLAD.
Petersen Aluminum generates approximately $160 million in revenues annually.
Details of the Buyout
Per the terms of the agreement, the buyout will be executed through the company’s Carlisle Construction Materials (“CCM”) segment. It’s worth mentioning here that the acquisition will expand the segment’s product offerings in the metal roofing platform, helping generate annual synergies of approximately $4 million. Also, this takeover will enable the company to easily penetrate the markets of Arizona, Texas, the Midwest and Georgia.
Notably, Carlisle’s CCM segment primarily engages in manufacturing waterproofing and roofing products for use in the industrial and commercial end markets. The segment is also the leading manufacturer and supplier of rubber roofing systems in Europe. This segment accounted for roughly 65.8% of the company’s total revenues in third-quarter 2018.
Snapshot of Carlisle Companies’ Buyout Initiatives
We believe that the above-mentioned transaction is in line with Carlisle’s policy of acquiring businesses to gain an access to new customers, regions and product lines.
Prior to the Petersen Aluminum buyout-deal, Carlisle added a similar line of businesses to its portfolio by acquiring Drexel Metals, Sunlast Metal and Premium Panels. Drexel Metals was acquired last July while Sunlast Metal and Premium Panels were bought in June 2018.
Significantly, Carlisle spent approximately $19.5 million on acquisitions (net of cash acquired) during the first nine months of 2018. Further, acquired assets added nearly 11.7% to sales growth in the third quarter of 2018.
Zacks Rank
With a market capitalization of nearly $6 billion, Carlisle currently carries a Zacks Rank #3 (Hold). A diversified product portfolio, buyouts, healthy commercial construction market in the United States and restructuring initiatives will be advantageous for the company in the quarters ahead. However, increasing input costs and high freight expenses plus exposure to forex woes might hurt its performance.
In the past 60 days, Carlisle’s earnings estimates for 2018 have been revised downward by six brokerage firms while that for 2019 by four firms. Currently, the Zacks Consensus Estimate is pegged at $5.61 for 2018 and $6.92 for 2019, reflecting a decline of 5.4% and 1.3%, each for 2018 and 2019 from the respective tallies 60 days ago.
Carlisle Companies Incorporated Price and Consensus
Carlisle Companies Incorporated Price and Consensus | Carlisle Companies Incorporated Quote
Since the release of third-quarter 2018 results on Oct 8, 2018, the company’s shares have declined 14.1% compared with the industry’s fall of 18.5%.
Stocks to Consider
Some better-ranked stocks in the industry are HC2 Holdings, Inc. , Crane Co. (CR - Free Report) and Federal Signal Corporation (FSS - Free Report) . While HC2 Holdings sports a Zacks Rank #1 (Strong Buy), Crane and Federal Signal carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for all the above three stocks improved with respect to the current year. Further, the positive earnings surprise in the last reported quarter was delivered at 111.90% for HC2 Holdings, 11.72% for Crane and 9.09% for Federal Signal.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>