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Masco (MAS) to Buy Majority Stake in Easy Sanitary Solutions
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Masco Corporation (MAS - Free Report) continues to expand its portfolio with acquisitions. In sync with this strategy, Masco's majority-owned subsidiary, Hansgrohe, has recently entered into an agreement to buy a majority stake in a Dutch company, Easy Sanitary Solutions or ESS.
Although financial terms of the deal are not yet disclosed, the deal is expected to close during first-quarter 2021. Notably, ESS will operate as a subsidiary of Hansgrohe SE.
Headquartered in Oldenzaal, The Netherlands, ESS is the inventor, developer and manufacturer of Easy Drain shower channels, and offers a wide range of products for barrier-free showering as well as bathroom wall niches.
Acquisitions: A Growth Driver
Masco has been expanding its portfolio with more and more acquisitions. In first-quarter 2020, Masco acquired the entire share capital of SmarTap A.Y Ltd. ("SmarTap"), a developer of a smart bathing system that monitors and controls the temperature and flow of water. SmarTap is included in the Plumbing Products segment and provides an adaptable solution for a wide range of products as it is compatible with all showerheads, hand showers, spouts and shower jets.
The company continues to invest in industry-leading branded building products, and its persistent focus on innovation and disciplined capital allocation will enable it to drive long-term growth as well as create value for shareholders.
Furthermore, as the housing end market is improving steadily, there is increasing demand for new home construction, and repair and remodeling products in all channels of distribution and across the price range. This momentum is expected to continue, which in turn will improve the demand for Masco's products.
Although the company remains cautious amid this challenging environment, it anticipates solid consumer demand to persist in fourth-quarter 2020. It expects sales growth, excluding currency, of 8-10%, with 150 basis points of margin expansion for fourth-quarter 2019.
Masco's shares have gained 13.9% year to date compared with the industry's growth of 17.5%. Earnings estimates for 2020 have also moved 13.3% north in the past 30 days. This signifies that analysts are optimistic about this Zacks Rank #2 (Buy) stock's near-term performance.
Zacks #1 Ranked Patrick’s earnings estimates for 2020 have moved 12.3% upward over the past 30 days.
Also a Zacks Rank #1 stock, TopBuild’s earnings for 2020 are expected to grow 24.2%.
Zacks #2 Ranked Construction Partners’ 2020 earnings estimates have moved 2.8% over the past 30 days.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Masco (MAS) to Buy Majority Stake in Easy Sanitary Solutions
Masco Corporation (MAS - Free Report) continues to expand its portfolio with acquisitions. In sync with this strategy, Masco's majority-owned subsidiary, Hansgrohe, has recently entered into an agreement to buy a majority stake in a Dutch company, Easy Sanitary Solutions or ESS.
Although financial terms of the deal are not yet disclosed, the deal is expected to close during first-quarter 2021. Notably, ESS will operate as a subsidiary of Hansgrohe SE.
Headquartered in Oldenzaal, The Netherlands, ESS is the inventor, developer and manufacturer of Easy Drain shower channels, and offers a wide range of products for barrier-free showering as well as bathroom wall niches.
Acquisitions: A Growth Driver
Masco has been expanding its portfolio with more and more acquisitions. In first-quarter 2020, Masco acquired the entire share capital of SmarTap A.Y Ltd. ("SmarTap"), a developer of a smart bathing system that monitors and controls the temperature and flow of water. SmarTap is included in the Plumbing Products segment and provides an adaptable solution for a wide range of products as it is compatible with all showerheads, hand showers, spouts and shower jets.
The company continues to invest in industry-leading branded building products, and its persistent focus on innovation and disciplined capital allocation will enable it to drive long-term growth as well as create value for shareholders.
Furthermore, as the housing end market is improving steadily, there is increasing demand for new home construction, and repair and remodeling products in all channels of distribution and across the price range. This momentum is expected to continue, which in turn will improve the demand for Masco's products.
Although the company remains cautious amid this challenging environment, it anticipates solid consumer demand to persist in fourth-quarter 2020. It expects sales growth, excluding currency, of 8-10%, with 150 basis points of margin expansion for fourth-quarter 2019.
Masco's shares have gained 13.9% year to date compared with the industry's growth of 17.5%. Earnings estimates for 2020 have also moved 13.3% north in the past 30 days. This signifies that analysts are optimistic about this Zacks Rank #2 (Buy) stock's near-term performance.
Other Stocks to Consider
Investors can also consider other stocks in the Zacks Building Products – Miscellaneous industry such as Patrick Industries Inc. (PATK - Free Report) , TopBuild Corp. (BLD - Free Report) and Construction Partners, Inc. (ROAD - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks #1 Ranked Patrick’s earnings estimates for 2020 have moved 12.3% upward over the past 30 days.
Also a Zacks Rank #1 stock, TopBuild’s earnings for 2020 are expected to grow 24.2%.
Zacks #2 Ranked Construction Partners’ 2020 earnings estimates have moved 2.8% over the past 30 days.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>