Machinery company, Barnes Group Inc. (B - Free Report) announced that it has completed the acquisition of Adval Tech’s molds business, except for the latter’s Chinese operations due to pending regulatory approvals. The company anticipates completing the purchase of the pending operations in fourth quarter 2016.
As revealed, Adval Tech’s molds business primarily develops, manufactures and supplies complex plastic injection molds for use in the packaging, medical, consumer, and automotive end-markets. The segment markets its products under Adval Tech FOBOHA brand.
Barnes Group has financed the transaction, valued at approximately CHF 133 million, with its existing cash resources as well as borrowing under its revolving credit facility. The company will integrate the acquired assets with its Industrial segment’s Molding Solutions strategic business unit.
Barnes Group anticipates that the acquisition will compliment its molding solutions business by allowing easy penetration into the plastic injection molding market. FOBOHA has an annual sale generation capacity of $75 million.
The share price of Barnes Group has gained roughly 14.5% since the announcement of the acquisition deal on Jul 12.
We believe such inorganic ways of strengthening its business will allow Barnes Group to offer better and innovative products to customers. A diverse portfolio and product mix, along with new business wins, should help the company deliver solid results in the quarters ahead. Currently, the Zacks Consensus Estimate for the stock is pegged at $2.51 per share for 2016 and $2.64 for 2017, reflecting year-over-year growth of 5.6% and 5%, respectively.
Zacks Rank & Stocks to Consider
With a market capitalization of $2.2 billion, Barnes Group presently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the machinery industry include DXP Enterprises, Inc. (DXPE - Free Report) , Tennant Company (TNC - Free Report) and Gorman-Rupp Co. (GRC - Free Report) . While DXP Enterprises and Tennant Company sport a Zacks Rank #1 (Strong Buy), Gorman-Rupp carries a Zacks Rank #2 (Buy).
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Machinery company, Barnes Group Inc. (B - Free Report) announced that it has completed the acquisition of Adval Tech’s molds business, except for the latter’s Chinese operations due to pending regulatory approvals. The company anticipates completing the purchase of the pending operations in fourth quarter 2016.
As revealed, Adval Tech’s molds business primarily develops, manufactures and supplies complex plastic injection molds for use in the packaging, medical, consumer, and automotive end-markets. The segment markets its products under Adval Tech FOBOHA brand.
Barnes Group has financed the transaction, valued at approximately CHF 133 million, with its existing cash resources as well as borrowing under its revolving credit facility. The company will integrate the acquired assets with its Industrial segment’s Molding Solutions strategic business unit.
Barnes Group anticipates that the acquisition will compliment its molding solutions business by allowing easy penetration into the plastic injection molding market. FOBOHA has an annual sale generation capacity of $75 million.
The share price of Barnes Group has gained roughly 14.5% since the announcement of the acquisition deal on Jul 12.
We believe such inorganic ways of strengthening its business will allow Barnes Group to offer better and innovative products to customers. A diverse portfolio and product mix, along with new business wins, should help the company deliver solid results in the quarters ahead. Currently, the Zacks Consensus Estimate for the stock is pegged at $2.51 per share for 2016 and $2.64 for 2017, reflecting year-over-year growth of 5.6% and 5%, respectively.
Zacks Rank & Stocks to Consider
With a market capitalization of $2.2 billion, Barnes Group presently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the machinery industry include DXP Enterprises, Inc. (DXPE - Free Report) , Tennant Company (TNC - Free Report) and Gorman-Rupp Co. (GRC - Free Report) . While DXP Enterprises and Tennant Company sport a Zacks Rank #1 (Strong Buy), Gorman-Rupp carries a Zacks Rank #2 (Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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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