Rexnord Corporation (RXN - Free Report) recently acquired the assets of LWG Specialised Plumbing Products from Australia-based Hills Holdings Limited. The financial terms of the acquisition were not disclosed.
LWG Specialised Plumbing Products, formed roughly 40 years ago, focuses mainly on plumbing products. The company was acquired by Hills Holdings in Feb 2008, enabling it to gain market share in Queensland and the Northern Territory. LWG generates annual revenues of $14 million and has six warehouses across Australia.
LWG provides plumbing solutions to the non-residential construction market. The company distributes stainless steel fixtures, tapware, back flow prevention devices, pressure reducing valves and flushing systems.
LWG distributes Rexnord’s Zurn brand and the two companies have been associated with each other for the past two decades. With LWG now becoming part of Rexnord, another subsidiary of Rexnord, Zurn Industries, LLC, will get a significant boost with respect to revenues, enabling it to penetrate further the non-residential construction market. Zurn Industries deals in the commercial, municipal and industrial markets, with its engineered water solutions, including a diverse offering of plumbing products.
Rexnord has been attempting to gain a greater market share across all its served markets. The LWG acquisition is Rexnord’s second in the past 10 days. Last month, Rexnord announced the acquisition of the U.K.-based company, Micro Precision Gear Technology, for an undisclosed amount. The specialty precision gears manufactured by Micro Precision cater to the aerospace industry. The acquisition is expected to widen Rexnord’s reach in the aerospace industry while leveraging Micro Precision’s goodwill.
The company is also focused on increasing its core sales in the coming quarters. For fiscal second-quarter 2014 as well as fiscal 2014 core sales are expected to grow in the range of 2% to 4%, over the comparable periods.
Rexnord currently carries a Zacks Rank #1 (Strong Buy). Other stocks worth a watch in the industry are Fabrinet , Plug Power Inc. (PLUG - Free Report) and AO Smith Corp. (AOS - Free Report) . While Fabrinet carries a Zacks Rank #1 (Strong Buy), Plug Power and AO Smith carry a Zacks Rank #2 (Buy).