MISTRAS Group, Inc. (MG - Free Report) announced the acquisition of The NACHER Corporation, a provider of maintenance and inspection services primarily on offshore platforms.
Princeton Junction, New Jersey-based MISTRAS Group expects the acquisition to be accretive to earnings from day one, augmenting the revenues by $25 million for the current fiscal year. The financial details of the deal were kept under wraps.
The NACHER acquisition will enable MISTRAS Group to venture into the robust offshore market, which includes over 3,800 off-shore platforms in the Gulf region alone. The company will also benefit from an access to fabrication facilities that support the rigs and platforms.
MISTRAS Group currently caters to mid and/or downstream operations of its integrated energy customers. The deal will allow the company to extend its services, and thus, attend the upstream operations of its clientele.
NACHER currently services under 5% of its potential market. The acquisition will hence allow MISTRAS Group to capitalize on the substantial growth prospects in the concerned market.
Moreover, MISTRAS Group will gain vital customer-driven cross-selling opportunities, including traditional and advanced non-destructive testing services, remote online asset integrity monitoring systems and enterprise-based inspection data management software. At the same time, the company will provide Asset Integrity Management Services (AIMS) engineering programs. These solutions are essential to clients for safeguarding the operating integrity of their offshore assets.
MISTRAS is a leading global provider of technology-enabled asset-protection solutions required to assess the structural integrity of critical energy, industrial and public infrastructure. Its solutions provide customers with asset life extension, enhanced productivity and profitability, compliance with government safety and environmental regulations, and superior risk-management operational decisions.
MISTRAS Group currently holds a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the industry include Garmin Ltd. (GRMN - Free Report) , Research Frontiers Inc. (REFR - Free Report) and Universal Electronics Inc. (UEIC - Free Report) , each holding a Zacks Rank #2 (Buy).