Rexnord Corporation announced that it agreed to acquire Canada-based Hadrian Inc. Financial terms of the transaction have not been disclosed by the company.
It is worth noting here that Rexnord’s share price gained 2.77% on December 4, ending the trading session at $38.64.
Inside the Headline
Hadrian is a specialist in manufacturing locker products and washroom toilet partitions — including those made of solid plastic, stainless steel, powder-coated metal and embossed stainless steel. Also, it is working on anti-graffiti finishes and privacy solutions for washroom.
The products provided by Hadrian as well as its innovative technologies will add more value to Rexnord’s Zurn washroom-related product line. To be precise, the buyout will enable Zurn to progress on its commitment to offer advanced washroom solutions to building owners.
The buyout is anticipated to be completed by December-end.
Notably, Hadrian will form part of the company’s Zurn business under the Water Management segment. The division deals in products that help in the enhancement of water quality, safety, flow control and conservation. It serves customers in commercial construction, infrastructure construction and residential construction markets.
The Zurn product line includes building drainage, finish plumbing, water safety, touchless solutions, water control, and others. It has a healthy customer base in education, retail, government, healthcare, fire protection and other markets.
The Water Management segment’s revenues were $199.7 million in the quarter ended Sep 30, 2020. It represented 40.5% of total sales generated by Rexnord in the quarter.
Rexnord’s Buyout Activities
Acquiring businesses is a good mean for Rexnord to expand its product line, gain access to new markets and enhance customer base. In the quarter ended September 2020, acquisitions had a positive impact of 1% on the company’s sales.
In January 2020, Rexnord acquired Just Manufacturing Company — a manufacturer of plumbing fixtures and stainless steel sinks for customers in the commercial and institutional markets. The buyout was added to the Water Management segment and aided the company to provide efficient washroom solutions.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $4.7 billion, Rexnord currently carries a Zacks Rank #2 (Buy). Diversified business structure, supply-chain optimization and footprint-repositioning programs, solid operational execution, and shareholder-friendly policies are likely to benefit the company in the quarters ahead. However, challenges related to the pandemic might be concerning.
In the past three months, the company’s shares have gained 33.7% compared with the industry’s growth of 16.9%.
Meanwhile, the Zacks Consensus Estimate for its earnings is pegged at $1.77 for 2020 and $2.04 for 2021, reflecting growth of 8.6% and 6.3% from the respective 60-day-ago figures. Also, the consensus estimate for the fourth quarter of 2020 has grown 11.1% to 40 cents per share.
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Rexnord Corporation announced that it agreed to acquire Canada-based Hadrian Inc. Financial terms of the transaction have not been disclosed by the company.
It is worth noting here that Rexnord’s share price gained 2.77% on December 4, ending the trading session at $38.64.
Inside the Headline
Hadrian is a specialist in manufacturing locker products and washroom toilet partitions — including those made of solid plastic, stainless steel, powder-coated metal and embossed stainless steel. Also, it is working on anti-graffiti finishes and privacy solutions for washroom.
The products provided by Hadrian as well as its innovative technologies will add more value to Rexnord’s Zurn washroom-related product line. To be precise, the buyout will enable Zurn to progress on its commitment to offer advanced washroom solutions to building owners.
The buyout is anticipated to be completed by December-end.
Notably, Hadrian will form part of the company’s Zurn business under the Water Management segment. The division deals in products that help in the enhancement of water quality, safety, flow control and conservation. It serves customers in commercial construction, infrastructure construction and residential construction markets.
The Zurn product line includes building drainage, finish plumbing, water safety, touchless solutions, water control, and others. It has a healthy customer base in education, retail, government, healthcare, fire protection and other markets.
The Water Management segment’s revenues were $199.7 million in the quarter ended Sep 30, 2020. It represented 40.5% of total sales generated by Rexnord in the quarter.
Rexnord’s Buyout Activities
Acquiring businesses is a good mean for Rexnord to expand its product line, gain access to new markets and enhance customer base. In the quarter ended September 2020, acquisitions had a positive impact of 1% on the company’s sales.
In January 2020, Rexnord acquired Just Manufacturing Company — a manufacturer of plumbing fixtures and stainless steel sinks for customers in the commercial and institutional markets. The buyout was added to the Water Management segment and aided the company to provide efficient washroom solutions.
Zacks Rank, Estimate Trend and Price Performance
With a market capitalization of $4.7 billion, Rexnord currently carries a Zacks Rank #2 (Buy). Diversified business structure, supply-chain optimization and footprint-repositioning programs, solid operational execution, and shareholder-friendly policies are likely to benefit the company in the quarters ahead. However, challenges related to the pandemic might be concerning.
In the past three months, the company’s shares have gained 33.7% compared with the industry’s growth of 16.9%.
Meanwhile, the Zacks Consensus Estimate for its earnings is pegged at $1.77 for 2020 and $2.04 for 2021, reflecting growth of 8.6% and 6.3% from the respective 60-day-ago figures. Also, the consensus estimate for the fourth quarter of 2020 has grown 11.1% to 40 cents per share.
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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