Standex International Corporation (SXI - Free Report) yesterday announced that it bought Renco Electronics. The transaction was valued at $28 million, financed with available cash. In addition to the cash portion, the transaction has certain earnout payments applicable for three years and conditioned upon the fulfillment of some financial targets.
The privately held Renco Electronics specializes in making coils, inductors, magnetic components, chokes and transformers. The products are mainly used in aerospace, consumer, military and industrial markets. It has manufacturing units in Asia and Rockledge.
Renco Electronics is headquartered in Rockledge, FL. The company generated revenues of $28 million in the trailing 12 months. Its employee strength is 120.
Discussion on Buyout
As noted, the addition of Renco Electronics will strengthen Standex’s effort to expand its geographical presence, boost its product offerings, and enhance technical and engineering capabilities. Also, solid customer base of Renco Electronics and its presence in multiple end markets will prove to be a boon for Standex.
In the first year of the completion, the buyout is anticipated to boost Standex’s earnings and consolidated free cash flow.
Standex’s Buyout Initiatives
The above-mentioned transaction is consistent with Standex’s policy of acquiring businesses or divesting non-core assets to improve its growth opportunities.
In fiscal 2019 (ended June 2019), the company acquired Ohio-based Genius Solutions Engineering Company and integrated into its Engraving segment. Also, it bought and added New Hampshire-based Regional Mfg. Specialists, Inc. to its Electronics segment. In fiscal 2020 (ended June 2020, results are awaited), the company acquired Michigan-based Tenibac-Graphion Inc. The buyout was added to the Engraving segment.
Zacks Rank, Price Performance and Estimate Trend
Standex currently carries a Zacks Rank #3 (Hold).
In the past three months, the company’s shares have gained 23.2% compared with the industry’s growth of 21.9%.
Also, the Zacks Consensus Estimate for its earnings per share is pegged at 85 cents for first-quarter fiscal 2021 (ending September 2020) and $4.01 for fiscal 2021 (ending June 2021), marking declines of 19.8% and 10.9% from the respective 60-day-ago figures.
Standex International Corporation Price and Consensus
Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Standex International Corporation (SXI - Free Report) yesterday announced that it bought Renco Electronics. The transaction was valued at $28 million, financed with available cash. In addition to the cash portion, the transaction has certain earnout payments applicable for three years and conditioned upon the fulfillment of some financial targets.
The privately held Renco Electronics specializes in making coils, inductors, magnetic components, chokes and transformers. The products are mainly used in aerospace, consumer, military and industrial markets. It has manufacturing units in Asia and Rockledge.
Renco Electronics is headquartered in Rockledge, FL. The company generated revenues of $28 million in the trailing 12 months. Its employee strength is 120.
Discussion on Buyout
As noted, the addition of Renco Electronics will strengthen Standex’s effort to expand its geographical presence, boost its product offerings, and enhance technical and engineering capabilities. Also, solid customer base of Renco Electronics and its presence in multiple end markets will prove to be a boon for Standex.
In the first year of the completion, the buyout is anticipated to boost Standex’s earnings and consolidated free cash flow.
Standex’s Buyout Initiatives
The above-mentioned transaction is consistent with Standex’s policy of acquiring businesses or divesting non-core assets to improve its growth opportunities.
In fiscal 2019 (ended June 2019), the company acquired Ohio-based Genius Solutions Engineering Company and integrated into its Engraving segment. Also, it bought and added New Hampshire-based Regional Mfg. Specialists, Inc. to its Electronics segment. In fiscal 2020 (ended June 2020, results are awaited), the company acquired Michigan-based Tenibac-Graphion Inc. The buyout was added to the Engraving segment.
Zacks Rank, Price Performance and Estimate Trend
Standex currently carries a Zacks Rank #3 (Hold).
In the past three months, the company’s shares have gained 23.2% compared with the industry’s growth of 21.9%.
Also, the Zacks Consensus Estimate for its earnings per share is pegged at 85 cents for first-quarter fiscal 2021 (ending September 2020) and $4.01 for fiscal 2021 (ending June 2021), marking declines of 19.8% and 10.9% from the respective 60-day-ago figures.
Standex International Corporation Price and Consensus
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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