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IDEX (IEX) Acquires Airtech for $470M, Adds to Its HST Segment
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IDEX Corporation (IEX - Free Report) yesterday announced that it completed the acquisition of Rutherford, NJ-based Airtech Group, Inc. along with the US Valve Corporation and other entities. The other party to the transaction, with the cash consideration of $470 million, was an investment fund handled by EagleTree Capital.
It is worth mentioning here that the buyout deal was announced by IDEX on Apr 27.
Notably, the company’s shares gained 0.26% yesterday, ending the trading session at $220.83.
Inside the Headlines
Airtech specializes in making compressor systems, vacuum pumps, valves and regenerative blowers. The products are widely used in transportation, food processing, packaging and alternative energy markets. The firm has operations in the United States, Asia and Europe.
As noted, IDEX will benefit from the buyout of Airtech as the latter is anticipated to boost its offerings of air moving technologies. Notably, Airtech had manufacturing operations in Rutherford, NJ, Shenzhen, China, and Werneck, Germany. Its largest facility is in Rutherford, NJ.
IDEX has integrated Airtech’s businesses with its Health & Science Technology (“HST”) segment. The segment engages in providing various precision fluidic solutions, including valves, degassing equipment, corrective tubing, pumps, fittings and complex manifolds. It also provides specialty medical equipment and devices used in life science applications. It operates in five platforms — including Gast, Material Processing Technologies, Scientific Fluidics & Optics, Micropump, and Sealing Solutions.
In the first quarter of 2021, the Health & Science Technology segment generated revenues of $250.4 million. The segmental sales grew 11.7% from the year-ago quarter.
IDEX’s Inorganic Initiatives
The above-mentioned transaction is consistent with IDEX’s policy of acquiring businesses to improve its product lines and market exposure. In first-quarter 2021, acquired assets positively impacted IDEX’s sales by 1%.
In March 2021, the company acquired Abel Pumps, L.P. along with its affiliates. The acquired assets have been integrated with IDEX’s Fluid and Metering Technologies segment.
Zacks Rank, Price Performance and Earnings Estimates
With a market capitalization of $16.7 billion, IDEX currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from its buyout activities, solid product portfolio and improving end-market businesses. However, challenges related to its supply chain, pandemic-related issues and higher taxes are concerning.
In the past three months, IDEX’s shares have gained 11.1% as compared with the industry’s growth of 5.9%.
Image Source: Zacks Investment Research
Also, the Zacks Consensus Estimate for earnings per share is pegged at $6.17 for 2021 and $6.71 for 2022, marking increases of 4.8% and 2.8% from the respective 60-day-ago figures. Likewise, earnings estimates of $1.62 for the second quarter reflect an increase of 10.2% from the 60-day-ago figure.
In the past 60 days, earnings estimates for these companies have improved for the current year. Further, positive earnings surprise for the last reported quarter was 82.81% for Tennant, 35.64% for Applied Industrial and 23.13% for Dover.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
IDEX (IEX) Acquires Airtech for $470M, Adds to Its HST Segment
IDEX Corporation (IEX - Free Report) yesterday announced that it completed the acquisition of Rutherford, NJ-based Airtech Group, Inc. along with the US Valve Corporation and other entities. The other party to the transaction, with the cash consideration of $470 million, was an investment fund handled by EagleTree Capital.
It is worth mentioning here that the buyout deal was announced by IDEX on Apr 27.
Notably, the company’s shares gained 0.26% yesterday, ending the trading session at $220.83.
Inside the Headlines
Airtech specializes in making compressor systems, vacuum pumps, valves and regenerative blowers. The products are widely used in transportation, food processing, packaging and alternative energy markets. The firm has operations in the United States, Asia and Europe.
As noted, IDEX will benefit from the buyout of Airtech as the latter is anticipated to boost its offerings of air moving technologies. Notably, Airtech had manufacturing operations in Rutherford, NJ, Shenzhen, China, and Werneck, Germany. Its largest facility is in Rutherford, NJ.
IDEX has integrated Airtech’s businesses with its Health & Science Technology (“HST”) segment. The segment engages in providing various precision fluidic solutions, including valves, degassing equipment, corrective tubing, pumps, fittings and complex manifolds. It also provides specialty medical equipment and devices used in life science applications. It operates in five platforms — including Gast, Material Processing Technologies, Scientific Fluidics & Optics, Micropump, and Sealing Solutions.
In the first quarter of 2021, the Health & Science Technology segment generated revenues of $250.4 million. The segmental sales grew 11.7% from the year-ago quarter.
IDEX’s Inorganic Initiatives
The above-mentioned transaction is consistent with IDEX’s policy of acquiring businesses to improve its product lines and market exposure. In first-quarter 2021, acquired assets positively impacted IDEX’s sales by 1%.
In March 2021, the company acquired Abel Pumps, L.P. along with its affiliates. The acquired assets have been integrated with IDEX’s Fluid and Metering Technologies segment.
Zacks Rank, Price Performance and Earnings Estimates
With a market capitalization of $16.7 billion, IDEX currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from its buyout activities, solid product portfolio and improving end-market businesses. However, challenges related to its supply chain, pandemic-related issues and higher taxes are concerning.
In the past three months, IDEX’s shares have gained 11.1% as compared with the industry’s growth of 5.9%.
Also, the Zacks Consensus Estimate for earnings per share is pegged at $6.17 for 2021 and $6.71 for 2022, marking increases of 4.8% and 2.8% from the respective 60-day-ago figures. Likewise, earnings estimates of $1.62 for the second quarter reflect an increase of 10.2% from the 60-day-ago figure.
IDEX Corporation Price and Consensus
IDEX Corporation price-consensus-chart | IDEX Corporation Quote
Stocks to Consider
Some better-ranked stocks in the industry are Tennant Company (TNC - Free Report) , Applied Industrial Technologies, Inc. (AIT - Free Report) and Dover Corporation (DOV - Free Report) . While Tennant currently sports a Zacks Rank #1 (Strong Buy), both Applied Industrial and Dover carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these companies have improved for the current year. Further, positive earnings surprise for the last reported quarter was 82.81% for Tennant, 35.64% for Applied Industrial and 23.13% for Dover.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>