Northwest Pipe Company (NWPX - Free Report) yesterday announced that it has acquired Park Environmental Equipment, LLC. The acquisition price, net of acquired cash, was $87.4 million and was funded by funds available under its existing credit facility.
Yesterday, Northwest Pipe’s shares gained 1.16%, ending the trading session at $24.49.
Houston, TX-based Park Environmental is a specialist in providing products and solutions for use in the wastewater, water, and environmental infrastructure industry. Its offerings include potable water service products, fire protection water service products, stormwater treatment products, pretreatment products for wastewater, etc.
In 2020, Park Environmental’s revenues totaled $66.5 million and adjusted earnings before interest, tax, depreciation and amortization were $14 million. Its employee strength was 280.
Inside the Headlines
With the addition of Park Environmental, Northwest Pipe is well-positioned to leverage the benefits from its extended product and service offerings, customer base, and enhance technological capabilities. Park Environmental’s three manufacturing facilities in San Antonio, Houston, and Dallas will boost Northwest Pipe’s production abilities.
Overall, Northwest Pipe anticipates strengthening its foothold in the water infrastructure market of Texas with this buyout. Immediate earnings accretion is also expected.
It is worth mentioning here that Northwest Pipe believes in acquiring businesses/assets in an attempt to gain access to new customers, end markets, and product lines. In second-quarter 2021, the company’s sales increased $15 million on account of sales contribution from Geneva Pipe and Precast Company.
Geneva Pipe and Precast Company was acquired by Northwest Pipe in first-quarter 2020 for $49.4 million.
Zacks Rank, Price Performance and Earnings Estimate Trend
Northwest Pipe currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from the increasing backlog, strengthening bidding environment, and healthy precast concrete business in second-half 2021. Issues with the steel pressure pipe business are concerning.
In the past three months, the company’s shares have lost 12.3% compared with the industry’s decline of 5.4%.
The Zacks Consensus Estimate for Northwest Pipe’s earnings is pegged at $1.22 for 2021 and $2.27 for 2022, suggesting no change from the respective 60-day ago figures. The earnings estimates for the third quarter of 2021 are unchanged at 33 cents.
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It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
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Northwest Pipe Company (NWPX - Free Report) yesterday announced that it has acquired Park Environmental Equipment, LLC. The acquisition price, net of acquired cash, was $87.4 million and was funded by funds available under its existing credit facility.
Yesterday, Northwest Pipe’s shares gained 1.16%, ending the trading session at $24.49.
Houston, TX-based Park Environmental is a specialist in providing products and solutions for use in the wastewater, water, and environmental infrastructure industry. Its offerings include potable water service products, fire protection water service products, stormwater treatment products, pretreatment products for wastewater, etc.
In 2020, Park Environmental’s revenues totaled $66.5 million and adjusted earnings before interest, tax, depreciation and amortization were $14 million. Its employee strength was 280.
Inside the Headlines
With the addition of Park Environmental, Northwest Pipe is well-positioned to leverage the benefits from its extended product and service offerings, customer base, and enhance technological capabilities. Park Environmental’s three manufacturing facilities in San Antonio, Houston, and Dallas will boost Northwest Pipe’s production abilities.
Overall, Northwest Pipe anticipates strengthening its foothold in the water infrastructure market of Texas with this buyout. Immediate earnings accretion is also expected.
It is worth mentioning here that Northwest Pipe believes in acquiring businesses/assets in an attempt to gain access to new customers, end markets, and product lines. In second-quarter 2021, the company’s sales increased $15 million on account of sales contribution from Geneva Pipe and Precast Company.
Geneva Pipe and Precast Company was acquired by Northwest Pipe in first-quarter 2020 for $49.4 million.
Zacks Rank, Price Performance and Earnings Estimate Trend
Northwest Pipe currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from the increasing backlog, strengthening bidding environment, and healthy precast concrete business in second-half 2021. Issues with the steel pressure pipe business are concerning.
In the past three months, the company’s shares have lost 12.3% compared with the industry’s decline of 5.4%.
The Zacks Consensus Estimate for Northwest Pipe’s earnings is pegged at $1.22 for 2021 and $2.27 for 2022, suggesting no change from the respective 60-day ago figures. The earnings estimates for the third quarter of 2021 are unchanged at 33 cents.
Highest Returns for Any Asset Class
It’s not even close. Despite ups and downs, Bitcoin has been more profitable for investors than any other decentralized, borderless form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%. Zacks predicts another significant surge in months to come.
Hurry, Download Special Report – It’s FREE >>
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